>Problems Group B e3 P22-47B Preparing an operating budget-sales, production, direct materials, direct labor, overhead, COGs, and S&A expense budgets The Irwin Batting Company manufactures wood bascball bats. Irwin'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. Irwin sells the bats to sporting ,450 goods stores, and all sales are on account. The youth bat sells for $35, the adult bat sells for $50. Irwins highest sales volume is in the first three months of the year as retailers prepare for the spring bascball season. Irwin's balance sheet for December 31, 2018, follows: RWIN BATTING COMPANY Balance Sheet December 31, 2018 Assets Current Assets: s 20,000 18,500 9,000 16,000 Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets 5 63,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 130,000 (70,000) 60,000 123,500 Total Assets Liabilities Current Liabilities: Accounts Payable s 11,600 Stockholders' Equity Common Stock, no par Retained Earnings $ 90,000 21.900 Total Stockholders' Equity Total Liabilities and Stockholders Equity 111,900 5 123,500 Other data for Irwin Batting Company for the first quarter of 2019 a. Budgeted sales are 1,400 youth bats and 3,300 adult bats b. Finished Goods Inventory on December 31,2018, consists of 700 youth bats at $15 cach and 550 adult bats at $10 cach. FIFO inventory costing method is used of wood for adult bats. The cost of wood is $0.10 per ounce wood at $0.10 per ounce insignificant and not considerod for budgeting purposcs) c. Desired ending Finished Goods Inventory is 220 youth bats and 300 adult bats; d. Direct matcrials roquirements are 40 ounces of wood for youth bats and 70 ounces e. Raw Matcrials Inventory on Decomber 31, 2018, consists of 90,000 ounces of f. Desiod ending Raw Materials Inventory is 90,000 ounces (indirect matcrials are e Each bat roquircs 0.4 hours of dircct labor, direct labor costs average $26 per hour h. Variabde manufacturing ovcrhcad is 5o 30 per bat i. Fised manufacturing overtowindudes $1,300 Ext 4panir .kpeniam and $14,977 por puartcr for other costs, such as insurance and property taNcS j. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $3,500 per quarter for rent; $1,400 per quarter for insurance; and $450 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales Requirements 1. Prepare Irwin's sales budget for the first quarter of 2019. 2. Prepare Irwin's production budget for the first quarter of 2019 3. Prepare Irwin's direct materials, direct labor budget, and manufacturing overhead budget for the first quarter of 2019. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. 4. Prepare Irwin's cost of goods sold budget for the first quarter of 2019. 5. Prepare Irwin's slling and administrative expense budget for the first quarter of 2019