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The Cooke Batting Company manufactures wood baseball bats. Cooke'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. Cooke sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $60, the adult bat sells for $85. Cooke's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Cooke's balance sheet for December 31, 2018, and other data for the first quarter of 2019 follow: E: (Click the icon to view the balance sheet.) i (Click the icon to view the other data.) Read the requirements. Bats Total 1,400 Bats 2,900 550 Data Table - X 4,300 750 * More Info - X 200 Budgeted bats to be sold Plus: Desired bats in ending inventory Total bats needed Less: Bats in beginning inventory 1,600 450 5,050 1,110 550 1,050 2,890 3,940 Budgeted bats to be produced Cooke Batting Company Balance Sheet December 31, 2018 Assets Requirement 3. Prepare Cooke's direct materials budget, direct labor budget, and manufacturing overhead budget for th Begin by preparing the direct materials budget. Current Assets: Cooke Batting Company Direct Materials Budget For the Quarter Ended March 31, 2019 Youth Cash Accounts Receivable Raw Materials Inventory 32,000 20,300 9,100 15,510 a. Budgeted sales are 1,400 youth bats and 2,900 adult bats. b. Finished Goods Inventory on December 31, 2018, consists of 550 youth bats at $17 each and 560 adult bats at $11 each. c. Desired ending Finished Goods Inventory is 200 youth bats and 550 adult bats, FIFO inventory costing method is used. d. Direct materials requirements are 42 ounces of wood per youth bat and 62 ounces of wood per adult bat. The cost of wood is $0.35 per ounce. e. Raw Materials Inventory on December 31, 2018, consists of 26,000 ounces of wood at $0.35 per ounce. f. Desired ending Raw Materials Inventory is 26,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.5 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $0.60 per bat. i. Fixed manufacturing overhead includes $700 per quarter in depreciation and $6,786 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $10,000 per quarter for salaries: $4,500 per quarter for rent; $1,900 per quarter for insurance, and $450 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 5% of sales. Adult Bats Bats Total Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: $ 76,910 Equipment 140,000 (40,000) Less: Accumulated Depreciation 100,000 $ 176,910 Total Assets Direct materials per bat (ounces) Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Print Print Done Done $ 10,500 Direct materials cost per ounce Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Budgeted cost of direct materials 70,000 96,410 166,410 Choose from any list or enter any number in the input fields and then click Check Answer. $ 176,910 5 parts remaining Check
