K The Langley Batting Company manufactures wood baseball bats. Langley'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. Langley sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $40; the adult bat sells for $65. Langley's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Langley's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: (Click the icon to view the other data.) (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare Langley's sales budget for the first quarter of 2025. Langley Batting Company Sales Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Budgeted bats to be sold Sales price per unit Total sales Requirement 2. Prepare Langley's production budget for the first quarter of 2025. Langley Batting Company Production Budget For the Quarter Ended March 31, 2025 Plus: Total bats needed Less: Youth Adult Bats Bats Total Budgeted bats to be produced Requirement 3. Prepare Langley'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. Begin by preparing the direct materials budget. Langley Batting Company Direct Materials Budget For the Quarter Ended March 31, 2025 Direct materials per bat (ounces) Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials Youth Adult Bats Bats Total The Langley Batting Company manufactures wood baseball bats. Langley'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. Langley sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $40; the adult bat sells for $65. Langley's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Langley's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: (Click the icon to view the other data.) (Click the icon to view the balance sheet.) Read the requirements. Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X.XX.) Review the production budget you prepared above. Langley Batting Company Direct Labor Budget For the Quarter Ended March 31, 2025 Direct labor hours needed for production Youth Adult Bats Bats Total Budgeted direct labor cost Prepare the manufacturing overhead budget. (Enter any per unit amounts to two decimal places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. Langley Batting Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2025 VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Youth Adult Bats Bats Total Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Langley's cost of goods sold budget for the first quarter of 2025. Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2025. (Round all amounts to the nearest cent.) Total projected manufacturing cost per bat for 2025 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Youth Bats Adult Bats Langley Batting Company Cost of Goods Sold Budget For the Quarter Ended March 31, 2025 Youth Adult Total The Langley Batting Company manufactures wood baseball bats. Langley'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. Langley sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $40; the adult bat sells for $65. Langley's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Langley's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: (Click the icon to view the other data.) (Click the icon to view the balance sheet.) Read the requirements. Prepare the manufacturing overhead budget. (Enter any per unit amounts to two decimal places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. Langley Batting Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2025 VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Youth Adult Bats Bats Total Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Langley's cost of goods sold budget for the first quarter of 2025. Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2025. (Round all amounts to the nearest cent.) Total projected manufacturing cost per bat for 2025 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Youth Bats Adult Bats Langley Batting Company Cost of Goods Sold Budget For the Quarter Ended March 31, 2025 Bats produced and sold in 1st quarter of 2025 Youth Bats Adult Bats Total Total budgeted cost of goods sold Requirement 5. Prepare Langley's selling and administrative expense budget for the first quarter of 2025. Review the sales budget you prepared above. Langley Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2025 More info a. Budgeted sales are 1,200 youth bats and 2,600 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 300 youth bats at $14 each and 950 adult bats at $18 each. - X c. Desired ending Finished Goods Inventory is 350 youth bats and 300 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 48 ounces of wood per youth bat and 56 ounces of wood per adult bat. The cost of wood is $0.25 per ounce. e. Raw Materials Inventory on December 31, 2024, consists of 24,000 ounces of wood at $0.25 per ounce. f. Desired ending Raw Materials Inventory is 24,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.7 hours of direct labor; direct labor costs average $18 per hour. h. Variable manufacturing overhead is $0.30 per bat. i. Fixed manufacturing overhead includes $1,300 per quarter in depreciation and $20,140 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $9,000 per quarter for salaries; $2,500 per quarter for rent; $1,000 per quarter for insurance; and $200 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. a ma Print Done Data table Langley Batting Company Balance Sheet December 31, 2024 Assets outh Adult Bats Bats Total Current Assets: Cash 30,000 Accounts Receivable 16,700 Raw Materials Inventory 6,000 Finished Goods Inventory 21,300 Total Current Assets 74,000 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Accounts Payable Liabilities 130,000 (50,000) 80,000 $ 154,000 Stockholders' Equity Common Stock, no par $ 90,000 48,800 Retained Earnings 15,200 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 138,800 $ 154,000 Print Done - ar de