Question: prepare companies Direct materials, direct labour budget, manufacturing overhead budget for the first quarter of 2019

Information is:

Company manufacturers wood baseball bats. two primary products are a youth batt and an adult batt. The company sells the bats to sporting goods stores, all sales are on an account. The youth bat sells for $35 and the adult bat $50.

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Other Information

budgeted sales are 1400 youth and 3300 adult bats

finished goods inventory on December 31st, 2018, consists of 700 youth bats at $15 each and 550 adult bats at $10 each

desired ending finished good inventory is 220 youth bats and 300 adult bats: inventory costing method is used.

direct material requirments are 40 ounces of wood for youth and 70 ounces of wood for adult bats. cost of wood is $0.10 per ounce

raw materials inventory on December 31st,2018, consists of 90,000 ounces of wood at $0.10 per ounce

desired ending raw material inventory is 90,000 ounces

each bat requires 0.4 hours of direct labour: direct labour costs average $26 per hour

variable manufacturing overhead is $0.30 per bat

fixed manufacturing overhead includes $1300 per quarter in depreciation and $14977 per quarter for other costs, such as insurance and property tax

Fix selling and administrative expenses include $13000 per quarter for salaries; $3500 per quarter for rent; $1400 per quarter in insurance; $450 per quater for deprecation

Variable selling and administrative expenses include supplies at 1% of sales.

IRWIN BATTING COMPANY Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets $ 20,000 18,500 9,000 16,000 63,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 130,000 (70,000) 60,000 Total Assets S 123,500 Liabilities Current Liabilities: Accounts Payable 5 11,600 Stockholders' Equity Common Stock, no par Retained Earnings 90,000 21,900 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 111,900 123,500