(Click the icen to vew the balance sheet) (Click the ken fo vilew the other data) More info Data table 2. Budgeted sales aro 1,100 youh bants and 2.700 adset bats: b. Finished Goods Imventory on December 31,2024 , eonsists of 400 youth bats at $15 each and 800 adult bats at $12 each. c. Desired ending Finished Goods imventary is 500 youth bats und 500 adult bats. FFO inventory esesing method is used. d. Direct materials requirements are 46 conces of wood per youth bat and 62 ounces of wood per adult bat. The cost of wood is 50.15 per ounce. e. Raw Matenals Inventocy on December 31, 2024, consists of 30,000 ouncers ef wood at $0.15 per eunce: 1. Detired ending Raw Matenals inventory is 30,000 tunces findiect materials are insignificant and not considered for budjeting purposes) 9. Each bat requires 0.2 hours of direct tabor; droct laber costs average $12 per hou: h. Variable manulacturing evertheod is $0.60 per bat. 1. Foed manulacturing overthead includes $700 per quarter in depreciation and $2,140 per quarler for oher costs, such as insuance and property tares. 1. Fived seling and administrative expunses include $6,000 per quarter for salaries: $1,000 per queter for tent $4,400 per quarter for inturtince; and $580 per quarter for depreciation. k. Variable selling and bdministrative expenses indude sueples at 2% of sales. The Vang Batting Company manytactures wood bsseball bats. Vang's two primary products are a youth bat, designed for children and young foens, and an adult bat, designed for high sechook. thee months of the year as relailers prepare for the spring basebat season. Vangis balance sheet for December 31, 2024, and other dota for the first euarter of 2025 follow. (Click the loon to vew the balance shet.) (Cick the inon to view the other data) Roud the rooirements. Requirement 1. Prepare Vang's sales budget for the finst quarter of 2025. Requirement 2 Prepare Vang's production budget for the first quarter of 2025 Requirement 3. Prepare Vang's direct materials budget, direct labor budgot, and manulacturing overhead budget for the first quarter of 2025. Round the predetermined overhead allocation rate to two decimal places. The overthead allocation base is direct labor hours. Begin by preparing the dirnct materiats tudgot. \begin{tabular}{l} For the Quarter Ended March 31, 2025 \\ \hline Direct materials per bat (ounces) \\ Direct materials needed toc production \\ Plus: \\ Total direct materials needed \\ Lest: \\ Budpeted purchases of direct materiais \\ Drect materials cost per cunce \\ Budgetod cost of direct materials \end{tabular} Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX.) Review the production budget you prepared above. Prepare the manufacturing overhead budget (Enter any per unit amounts to wo decimal placos, XXX. Abbreviations used: VOH = variable manutacturing overhead; FOH = farod manutacturing overhead) Review the production budget you prepared above. Review the direct labor budget you prepared above. Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Vang's cost of goods sold budget for the first quarter of 2025. Belore preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2025 . (Round all amounts to the nearest cent.) Now prepare the cost of goods sold budget. Revlew the salos budget you propared above. Review the production budget you prepared above. Requirement 5. Prepare Vang's selling and administrative expense budget for the first quarter of 2025. Review the sales budget you prepared above
