The Cooke Batting Company manufactures wood baseball bats. Cooke'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. Cooke sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $30; the adult bat sells for $85. Cooke's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Cooke's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the reguirements. Requirement 1. Prepare Cooke's sales budget for the first quarter of 2025. Requirement 2. Prepare Cooke's production budget for the first quarter of 2025. \begin{tabular}{|c|c|c|c|c|} \hline Raw Materials Inventory & \multicolumn{4}{|c|}{7,350} \\ \hline Finished Goods Inventory & \multicolumn{3}{|c|}{10,500} & = \\ \hline Total Current Assets & & & $ & 46,350 \\ \hline Property, Plant, and Equipment: & & e & & \\ \hline Equipment & & 115,000 & & \\ \hline Less: Accumulated Depreciation & & (25,000) & & 90,000 \\ \hline Total Assets & & & $ & 136,350 \\ \hline \multicolumn{5}{|c|}{ Liabilities } \\ \hline \multicolumn{5}{|l|}{ Current Liabilities: } \\ \hline Accounts Payable & & & \$t & 17,300 \\ \hline \multicolumn{5}{|c|}{ Stockholders' Equity } \\ \hline Common Stock, no par & $ & 100,000 & & \\ \hline Retained Earnings & & 19,050 & & \\ \hline \multicolumn{2}{|l|}{ Total Stockholders' Equity } & & & 119,050 \\ \hline \multicolumn{2}{|l|}{ Total Liabilities and Stockholders' Equity } & & $ & 136,350 \\ \hline \end{tabular} a. Budgeted sales are 1,400 youth bats and 2,900 adult bats. b. Finished Goods Inventory on December 31,2024 , consists of 350 youth bats at $12 each and 450 adult bats at $14 each. c. Desired ending Finished Goods Inventory is 200 youth bats and 240 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 42 ounces of wood per youth bat and 60 ounces of wood per adult bat. The cost of wood is $0.35 per ounce. e. Raw Materials Inventory on December 31,2024, consists of 21,000 ounces of wood at $0.35 per ounce. f. Desired ending Raw Materials Inventory is 21,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.2 hours of direct labor; direct labor costs average $20 per hour. h. Variable manufacturing overhead is $0.50 per bat. i. Fixed manufacturing overhead includes $600 per quarter in depreciation and $4,522 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $14,000 per quarter for salaries; $5,500 per quarter for rent; $1,500 per quarter for insurance; and $50 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. Cooke Batting Company Balance Sheet December 31, 2024 Assets Current Assets: Cash Accounts Receivable $10,000 Raw Materials Inventory 18,500 Finished Goods Inventory 7,350 Total Current Assets 10,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets 115,000 (25,000) 90,000 $136,350 Liabilities
