FIUDICAL SUPE The Huber Batting Company manufactures wood baseball bats. Huber'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. Huber sells the bats to sporting goods stores, and all sales are on account. The youth bat sells for $35; the adult bat sells for $65. Huber's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Huber's balance sheet for December 31, 2016, follows: HUBER BATTING COMPANY Balance Sheet December 31, 2016 Assets Current Assets: Cash 15,000 Accounts Receivable 21,600 Raw Materials Inventory 12.000 Finished Goods Inventory 17,210 Total Current Assets $ 65,810 Property. Plant, and Equipment: Equipment 115,000 Less: Accumulated Depreciation (20,000) 95,000 Total Assets $ 160,810 Liabilities Current Liabilities: Accounts Payable $ 10,500 Stockholders' Equity Cornron Stock, no par $ 130,000 Retained Earnings 20,310 Total Stockholders' Equity 150,310 Total Liabilities and Stockholders' Equity $ 160,810 Other data for Huber Batting Company for the first quarter of 2017: a. Budgeted sales are 1,300 youth bats and 3,100 adult bats. b. Finished Goods Inventory on December 31 consists of 650 youth bats at $17 each and 440 adult bats at $14 each. c. Desired ending Finished Goods Inventory is 100 youth bats and 550 adult bats; FIFO inventory costing method is used. d. Direct materials cost is $7 per youth bat and $9 per adult bat. e. Desired ending Raw Materials Inventory is $12,000 (indirect materials are insignificant and not considered for budgeting purposes). f. Each bat requires 0.5 hours of direct labor; direct labor costs average $15 per hour. g. Variable manufacturing overhead is $0.50 per bat. h. Fixed manufacturing overhead includes $600 per quarter in depreciation and $13,260 per quarter for other costs, such as insurance and property taxes. 1. Fixed selling and administrative expenses include $14,000 per quarter for salaries; $3,000 per quarter for rent; $2,000 per quarter for insurance; and $300 per quarter for depreciation. 1. Prepare Huber's sales budget for the first quarter of 2017. 2. Prepare Huber's production budget for the first quarter of 2017. HUBER BATTING COMPANY Production Budget For the Quarter Ended March 31, 2017 Youth Bats Adult Bats Total Budgeted bats to be sold Plus: Desired bats in ending inventory Total bats needed Less: Bats in beginning inventory Budgeted bats to be produced 3. Prepare Huber's direct materials budget direct labor budget, and manufacturing over head budget for the first quarter of 2017. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. HUBER BATTING COMPANY Direct Materials Budget For the Quarter Ended March 31, 2017 Youth Bats Adult Bats Total Budgeted bats to be produced Direct materials cost per bat Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials HUBER BATTING COMPANY Direct Labor Budget For the Quarter Ended March 31, 2017 Youth Bats Adult Bats Total Budgeted bats to be produced Direct labor hours per bat Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost HUBER BATTING COMPANY Manufacturing Overhead Budget For the Quarter Ended March 31, 2017 Youth Bats Adult Bats Total Budgeted bats to be produced Variable overhead cost per bat Budgeted variable overhead Budgeted fixed overhead Depreciation Insurance and property taxes Total budgeted fixed overhead Budgeted manufacturing overhead costs Direct labor hours (from DL Budget) Predetermined overhead allocation rate 4. Prepare Huber's cost of goods sold budget for the first quarter of 2017. HUBER BATTING COMPANY Cost of Goods Sold Budget For the Quarter Ended March 31, 2017 Youth Bats Adult Bats Total Beginning inventory Bats produced and sold in 1" quarter of 2017 Total budgeted cost of goods sold