The

Haney

Batting Company manufactures wood baseball bats.

Haney'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.

Haney

sells the bats to sporting goods stores and all sales are on account. The youth bat sells for

$15;

the adult bat sells for

$65.

Haney's

highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season.

Haney's

balance sheet for

December

31,

2018,

and other data for the first quarter of

2019

follow:

Haney Batting Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 22,000 Accounts Receivable 21,600 Raw Materials Inventory 5,800 15,850 Finished Goods Inventory Total Current Assets 65,250 Property, Plant, and Equipment: Equipment 160,000 (25,000) Less: Accumulated Depreciation 135,000 $ 200,250 Total Assets Liabilities Current Liabilities: Accounts Payable $ 17,300 Stockholders' Equity Common Stock, no par $ 70,000 112,950 Retained Earnings a. Budgeted sales are 1,900 youth bats and 3,000 adult bats. b. Finished Goods Inventory on December 31, 2018, consists of 650 youth bats at $10 each and 850 adult bats at $11 each. c. Desired ending Finished Goods Inventory is 200 youth bats and 500 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 42 ounces of wood per youth bat and 62 ounces of wood per adult bat. The cost of wood is $0.20 per ounce. e. Raw Materials Inventory on December 31, 2018, consists of 29,000 ounces of wood at $0.20 per ounce. f. Desired ending Raw Materials Inventory is 29,000 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 $1,400 per quarter in depreciation and $4,750 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $15,000 per quarter for salaries; $5,000 per quarter for rent; $1,700 per quarter for insurance; and $550 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. The Haney Batting Company manufactures wood baseball bats. Haney'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. Haney sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $15; the adult bat sells for $65. Haney's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Haney's balance sheet for December 31, 2018, and other data for the first quarter of 2019 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Requirement 1. Prepare Haney's sales budget for the first quarter of 2019. Haney Batting Company Sales Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be sold Sales price per unit Total sales Requirement 2. Prepare Haney's production budget for the first quarter of 2019. Haney Batting Company Production Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be sold Plus: Desired bats in ending inventory Total bats needed Less: Bats in beginning inventory Budgeted bats to be produced Begin by preparing the direct materials budget. Haney Batting Company Direct Materials Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be produced Direct materials per bat (ounces) Direct materials needed for production Plus: Desired direct materials in ending inventory (ounces) Total direct materials needed Less: Direct materials in beginning inventory (ounces) Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials Haney Batting Company Direct Labor Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Haney Tire Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Budgeted bats to be produced VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Haney's cost of goods sold budget for the first quarter of 2019. Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2019. (Round all amounts to the nearest cent.) Youth Bats Adult Bats Direct materials cost per bat Direct labor cost per bat Manufacturing overhead cost per bat Total projected manufacturing cost per bat for 2019 Cost of Goods Sold Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Beginning inventory Bats produced and sold in 1st quarter of 2019 Total budgeted cost of goods sold Requirement 5. Prepare Haney's selling and administrative expense budget for the first quarter of 2019. Review the sales budget you prepared above. Haney Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2019 Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense Total budgeted selling and administrative expense