d-platform-118odpName-SMSBisPrint Problems Group B P22-47B Preparing an operating budget-sales, production, direct materials, direct labor, overhead, COGS, and S&A expense budgets The Irwin Batting Company manufactures wood baseball bats. Irwin'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. Irwin sells the bats to sporting goods stores, and all sales are on account. The youth bat sells for $35; the adult bat sells for $50. Irwin's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Irwin's balance sheet for December 31, 2018, follows: 1267 IRWIN BATTING COMPANY Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets s 20,000 18,500 9,000 16,000 5 63,500 Home buca Assignments-ACCT 104Z+ VYYX/page/a11430764835681oe2bof4bfbb82eacb0299fefDe?deeplink-true8platforms id platform-11 Problems Group B Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets s 20,000 18,500 9,000 16,000 -s 63,500 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 130,000 (70,000) 60,000 Total Assets S 123,500 Liabilities Current Liabilities Accounts Payable S 11,600 Stockholders Equity Common Stock, no par Retained Earnings 90,000 21,900 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 111,900 s 123,500 es fe f1o 112 Other data for Irwin Batting Company for the first quarter of 2019: a. Budgeted sales are 1,400 youth bats and 3,300 adult bats. b. Finished Goods Inventory on December 31, 2018, consists of 700 youth bats at $15 each and 550 adult bats at $10 each. c. Desired ending Finished Goods Inventory is 220 youth bats and 300 adult bats; FIFO inventory costing method is used. d. Direct materials requtirements are 40 ounces of wood for youth bats and 70 ounces of wood for adult bats. The cost of wood is $0.10 per ounce e. Raw Materials Inventory on December 31. 2018, consists of 90,000 ounces of wood at $0.10 per ounce t Desired ending Raw Matelals Inventony 4 90,000 ounces indirect materials are insignificant and not considened tor budgeting purposes). g Each bat requires 0.4 hours of direct abor, direst labor costs average $26 per hour. h. Variable manufacturing overhead is $0.30 per bat. i. Fixed manufacturing overhead includes $1.300 per quarter in 1002 PM i. Fixed manufacturing overhead includes $1,300 per quarter in depreciation and $14,977 per quarter for other costs, such as insurance and property taxes j. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $3,500 per quarter for rent; $1,400 per quarter for insurance; and $450 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Requirements 1. Prepare Irwin's sales budget for the first quarter of 2019. 2. Prepare Irwin's production budget for the first quarter of 2019. 3. Prepare Irwin's direct materials, direct labor budget, and manufacturing overhead budget for the first quarter of 2019. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. POHR $11 1. Prepare Irwin's cost of goods sold budget for the first quarter of 2019. Adult bats COGS $65,450 5. Prepare Irwin's selling and administrative expense budget for the first quarter of 2019. Requirements: #6 Prepare a Budgeted ncome Statement for the quarter using the results PRODUCTS/BATS on the operating budgets prepared under Requirements #1 5 Note this is for both ALL #7 . Calculate Variable Cost per unit for the YOUTH BATS ONLY