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Part $1$

The Huber Batting Company manufactures wood baseball bats. Huber$\text{'}$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. Huber sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $ $55$; the adult bat sells for $ $60.$ Huber$\text{'}$s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Huber$\text{'}$s balance sheet for December $31,2024,$ and other data for the first quarter of $2025$follow:

Data table

Huber Batting Company

Balance Sheet

December $31,2024$

Assets

Current Assets:

Cash

$$32,000$

Accounts Receivable

$17,900$

Raw Materials Inventory

$5,200$

Finished Goods Inventory

$12,690$

Total Current Assets

$$67,790$

Property, Plant, and Equipment:

Equipment

$140,000$

Less: Accumulated Depreciation

$(35,000)$

$105,000$

Total Assets

$$172,790$

Liabilities

Current Liabilities:

Accounts Payable

$$8,000$

Stockholders' Equity

Common Stock, no par

$$130,000$

Retained Earnings

$34,790$

Total Stockholders' Equity

$164,790$

Total Liabilities and Stockholders' Equity

$$172,790$

Requirements

$1.$

Prepare Huber$\text{'}$s sales budget for the first quarter of $2025.$

$2.$

Prepare Huber$\text{'}$s production budget for the first quarter of $2025.$

$3.$

Prepare Huber$\text{'}$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.

$4.$

Prepare Huber$\text{'}$s cost of goods sold budget for the first quarter of $2025.$

$5.$

Prepare Huber$\text{'}$s selling and administrative expense budget for the first quarter of $2025.$

More info

a$.$

Budgeted sales are $1,500$ youth bats and $3,000$ adult bats.

b$.$

Finished Goods Inventory on December $31,2024,$ consists of $350$ youth bats at $$11$ each and $520$ adult bats at $$17$ each.

c$.$

Desired ending Finished Goods Inventory is $100$ youth bats and $460$ adult bats; FIFO inventory costing method is used.

d$.$

Direct materials requirements are $40$ ounces of wood per youth bat and $64$ ounces of wood per adult bat. The cost of wood is $$0\mathrm{.}20$ per ounce.

e$.$

Raw Materials Inventory on December $31,2024,$ consists of $26,000$ ounces of wood at $$0\mathrm{.}20$ 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 $0\mathrm{.}3$ hours of direct labor; direct labor costs average $$20$ per hour.

h$.$

Variable manufacturing overhead is $$0\mathrm{.}60$ per bat.

i$.$

Fixed manufacturing overhead includes $$600$ per quarter in depreciation and $$3,171$ per quarter for other costs, such as insurance and property taxes.

j$.$

Fixed selling and administrative expenses include $$11,000$ per quarter for salaries; $$2,000$ per quarter for rent; $$1,800$ per quarter for insurance; and $$50$ per quarter for depreciation.

k$.$

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

Requirement $1.$ Prepare Huber$\text{'}$s sales budget for the first quarter of $2025.$

Huber 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

Part $2$

Requirement $2.$ Prepare Huber$\text{'}$s production budget for the first quarter of $2025.$

Huber Batting Company

Production Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Plus:

Total bats needed

Less:

Budgeted bats to be produced

Part $3$

Requirement $3.$ Prepare Huber$\text{'}$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.

Huber Batting Company

Direct Materials Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

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

Part $4$

Prepare the direct labor budget. $($Enter any hours per unit amounts to two decimal$$ places, X$.$XX$.)$

Review the production budget you prepared above.LOADING...

Huber Batting Company

Direct Labor Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Direct labor hours needed for production

Budgeted direct labor ccosts of goods solf

Part $5$

Prepare the manufacturing overhead budget. $($Enter any per unit amounts to two decimal$$ places, X$.$XX$.$ Abbreviations$$ used: VOH$=$ vari

variable manufacturing$$ overhead; FOH$=$ fixed manufacturing$$ overhead.$)$

Review the production budget you prepared above.LOADING...

Review the d