Chapter 22 Homework Question 8, P22-38A (similar to) Part 5 of 8 HW Score: 89.88%, 80.89 of 90 points Points: 10.89 of 20 Save The Sosa Batting Company manufactures wood base all bats. Sosa's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Sosa sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $60, the adult bat sells for $80. Sosa's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Sosa's balance sheet for December 31, 2018, and other data for the first quarter of 2019 follow: (Click the icon to view the balance sheet.) Read the requirements. (Click the icon to view the other data.) Requirement 1. Prepare Sosa's sales budget for the first quarter of 2019. Sosa Batting Company Sales Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be sold 1,900 3,600 5,500 Sales price per unit $ 60 $ 80 $ 114,000 $288,000 $ 402,000 Total sales Production Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be sold 1,900 3,600 5,500 Plus: Desired bats in ending inventory 550 460 1,010 Total bats needed. 2,450 4,060 6,510 Less: Bats in beginning inventory 600 850 1,450 Budgeted bats to be produced 1,850 3,210 5,060 Requirement 3. Prepare Sosa's direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of 2019. Round the predetermined overhead albicon rate to two decal places. The overhead alocation base is direct labor hours Begin by preparing the direct materials budget. Sosa Batting Company Direct Materials Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be produced Direct materials per bat (ounces) 1,050 44 3.210 5,000 64 Direct materials needed for production 81,400 206.440 200840 27.000 Plus: Desired direct materials in ending inventory (ounces) Total direct materials needed Loss Direct materials in beginning inventory (ounces) Budgeted purchases of direct materials 313.840 27.000 208.840 Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX) Beview the production budget you prepared above. Sosa Batting Company Direct Labor Budget For the Quarter Ealed March 31, 2019 Youth Bats Adult Bats Total Budgeted bats to be produced 1,850 3.210 5,000 Direct labor hours per unit 0.10 0.10 0.10 Direct labor hours needed for production 185 321 506 Direct labor cost per hour $ 24 $ 24 $ 24 $ 4,440 $ 7,704 $ 12.144 Budgeted direct labor cost Prepare the manufacturing overhead budget (Enter any per unit amounts to two decimal places, XXX Abbreviations used: VOH = variable manufacturing overhead; FOH fond manufacturing overhead) Review the production budget you prepared above Review the direct labor budget you prepared above. Prepare the manufacturing overhead budget. (Enter any per unit amounts to two decimal places, XXX Abbreviations used VOH variable manufacturing vest FOH tad mandacturing overta) Review the production budget you prepared above. Review the direct labor budget you prepared above. Sosa Batting Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2019 Budgeted bats to be produced VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Youth Adult Bats Bats Total 1850 3210 5060 40 40 40 740 1284 2024 1000 518 1518 For the Quarter Ended March 31, 2019 Budgeted bats to be produced VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Youth Adult Bats Bats Total 1850 3210 5060 .40 40 40 740 1284 2024 1000 518 1518 13000 185 321 506 13000