Polar Bear Sluggers manufactures wood baseball bats. Polar Bear Sluggers has two primary products, youth bats and adult bats. Polar Bear Sluggers sells all the bats to sporting goods stores and all sales are on accounts. The youth bats sell for $40.00 and the adult bats sell for $85.00. The highest sales volume is in the first three months of the year as retailers prepare for baseball startin in the spring. Polar Bear Sluggers balance sheet for December 31, 2020 is as follows: Polar Bear Sluggers balance sheet for December 31, 2020 is as follows: Polar Bear Sluggers Balance Sheet December 31, 2020 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets $45,200 $16,000 $7,280 $11,150 $79,630 $160,200 -$35,690 $124,510 $204,140 $12,080 Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $150,400 $41,660 $192,060 $204,140 a. Budgeted sales are 1,460 youth bats and 3,020 adult bats. b. Finished Goods Inventory on December 31 consists of 240 youth bats at $8.00 each and 650 adults bats at $14.00 each. c. Desired ending Finished Goods Inventory is 220 youth bats and 290 adult bats: FIFO inventory costing method is used. d. Direct materials cost is $11.00 per youth bat and $4.00 per adult bat. e. Desired ending Raw Materials Inventory is $8,500 (Indirect materials are insignificant and not considered for budgeting purposes). f. Each bat requires 0.2 hours of direct labor; direct labor costs average $12.00 per hour. g. Variable manufacturing overhead is $0.80 per bat. h. Fixed manufacturing overhead includes $1,050 per quarter in depreciation and $5,380 per quarter for other costs. 1. Fixed selling and administrative expenses include $5,140 per quarter for salaries; $4,410 per quarter for rent; $1,090 per quarter for insurance; and $490 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 1.30% of sales, Complete the following budgets: Polar Bear Sluggers Sales Budget For the Quarter Ended March 31, 2021 Youth Bats Adult Bats Total Budgeted bats to be sold Sales price per bat Total Sales Youth Bats Adult Bats Total Bats to be sold Plus: Desired Ending Inventory Total Bats needed Less: Bats in Beginning Inventory Budgeted bats to be produced Polar Bear Sluggers Direct Materials Budget For the Quarter Ended March 31, 2021 Youth Bats Adult Bats Total Budgeted bats to be produced Direct materials 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 Polar Bear Sluggers Direct Labor Budget For the Quarter Ended March 31, 2021 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 hours Direct labor cost per hours Polar Bear Sluggers Manufacturing Overhead Budget For the Quarter Ended March 31, 2021 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 fixed overhead budget Budgeted manufacturing overhead costs Direct Labour hours Predetermined overhead allocation rate Polar Bear Sluggers Cost of Goods Sold Budget For the Quarter Ended March 31, 2021 Youth Bats Adult Bats Total Beginning Inventory Bats produced and sold in 1st quarter Total budgeted cost of goods sold Polar Bear Sluggers Selling and Administration Budget For the Quarter Ended March 31, 2021 Administration Salaries Expense Rent Expense Insurance Expense Depreciation Expense, Admin. Administration Supplies Expense Total Budgeted Selling & Administration Expense