quarter of $2026,$ follow:

View the balance sheet.

View the other data.

Read the requirements.

Requirement $1.$ Prepare Sharpe Batting Company's sales budget for the first quarter of $2026.$

Requirements

Prepare Sharpe Batting Company's sales budget for the first quarter of $2026.$

Prepare Sharpe Batting Company's production budget for the first quarter of

Prepare Sharpe Batting Company's direct materials budget, direct

labor budget, and manufacturing overhead budget for the first quarter of $2026$

Round the predetermined overhead allocation rate to two decimal places. The

overhead allocation base is direct labor hours.

Prepare Sharpe Batting Company's cost of goods sold budget for the first

quarter of $2026$

Prepare Sharpe Batting Company's selling and administrative expense budge

for the first quarter of $2026.$

Balance Sheet

Other Data

a$.$ Budgeted sales are $1,300$ youth bats and $3,300$ adult bats.

b$.$ Finished Goods Inventory on December $31,2025,$ consists of $650$ youth bats at $$20$

each and $450$ adult bats at $$20$ each.

c$.$ Desired ending Finished Goods Inventory is $450$ youth bats and $400$ adult bats;

FIFO inventory costing method is used.

d$.$ Direct materials requirements are $44$ ounces of wood per youth bat and $62$ ounces

of wood per adult bat. The cost of wood is $$0\mathrm{.}20$ per ounce.

e$.$ Raw Materials Inventory on December $31,2025,$ consists of $25,000$ ounces of wood

at $$0\mathrm{.}20$ per ounce.

f$.$ Desired ending Raw Materials Inventory is $25,000$ 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 $$26$ per hour.

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

i$.$ Fixed manufacturing overhead includes $$1,300$ per quarter in depreciation and

$$6,530$ per quarter for other costs, such as insurance and property taxes.

j$.$ Fixed selling and administrative expenses include $$7,000$ per quarter for salaries;

$$2,500$ per quarter for rent; $$1,200$ per quarter for insurance; and $$50$ per quarter for

depreciation.

k$.$ Variable selling and administrative expenses include supplies at $3\%$ of sales.