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Read the requirements.

Requirement $1.$ Prepare Sosa's sales budget for the first quarter of $2025.$

Requirements

Prepare Sosa's sales budget for the first quarter of $2025.$

Prepare Sosa's production budget for the first quarter of $2025.$

Prepare Sosa's direct materials budget, direct labor budget, and

manufacturing overhead budget for the first quarter of $2025.$ Round the

predetermined overhead allocation rate to two decimal places. The overhead

allocation base is direct labor hours.

Prepare Sosa's cost of goods sold budget for the first quarter of $2025.$

Prepare Sosa's selling and administrative expense budget for the first quarter

of $2025.$

Data table

More info

a$.$ Budgeted sales are $1,800$ youth bats and $3,400$ adult bats.

b$.$ Finished Goods Inventory on December $31,2024,$ consists of $450$ youth bats at $$16$

each and $840$ adult bats at $$10$ each.

c$.$ Desired ending Finished Goods Inventory is $200$ youth bats and $520$ adult bats;

FIFO inventory costing method is used.

d$.$ Direct materials requirements are $46$ ounces of wood per youth bat and $60$ ounces

of wood per adult bat. The cost of wood is $$0\mathrm{.}35$ per ounce.

e$.$ Raw Materials Inventory on December $31,2024,$ consists of $27,000$ ounces of wood

at $$0\mathrm{.}35$ per ounce.

f$.$ Desired ending Raw Materials Inventory is $27,000$ ounces $($indirect materials are

insignificant and not considered for budgeting purposes$).$

g$.$ Each bat requires $0\mathrm{.}5$ hours of direct labor; direct labor costs average $$25$ per hour.

h$.$ Variable manufacturing overhead is $$0\mathrm{.}70$ per bat.

i$.$ Fixed manufacturing overhead includes $$1,200$ per quarter in depreciation and

$$11,764$ per quarter for other costs, such as insurance and property taxes.

j$.$ Fixed selling and administrative expenses include $$14,000$ per quarter for salaries;

$$1,500$ per quarter for rent; $$1,800$ per quarter for insurance; and $$450$ per quarter

for depreciation.

k$.$ Variable selling and administrative expenses include supplies at $4\%$ of sales.