The Irwin Batting Company manufactures wood baseball bats. Irwin'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. Irwin sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $60, the adult bat sells for $85. Irwin's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season Irwin's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: (Click the icon to view the other data.) (Click the icon to view the balance sheet) Read the requirements. Requirement 1. Prepare Irwin's sales budget for the first quarter of 2025 Irwin 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 1. Prepare Irwin's sales budget for the first quarter of 2025. 2. Prepare Irwin's production budget for the first quarter of 2025. 3. Prepare Irwin'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 Irwin's cost of goods sold budget for the first quarter of 2025. 5. Prepare Irwin's selling and administrative expense budget for the first quarter of 2025. a. Budgeted sales are 1,000 youth bats and 3,000 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 650 youth bats at $11 each and 750 adult bats at $20 each. c. Desired ending Finished Goods Inventory is 450 youth bats and 350 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 52 ounces of wood per youth bat and 62 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 29,000 ounces of wood at $0.35 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 0.5 hours of direct labor; direct labor costs average $10 per hour. h. Variable manufacturing overhead is $0.80 per bat. i. Fixed manufacturing overhead includes $700 per quarter in depreciation and $8,480 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $14,000 per quarter for salaries; $4,000 per quarter for rent; $2,000 per quarter for insurance; and $550 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. Current Assets: Irwin Batting Company Balance Sheet December 31, 2024 Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities $ 69 14,000 15,500 10,150 22,150 $ 61,800 140,000 (20,000) KA $ 120,000 181,800 Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities 140,000 (20,000) 120,000 $ 181,800 Accounts Payable $ 8,000 Stockholders' Equity Common Stock, no par $ 150,000 Retained Earnings 23,800 173,800 Total Stockholders' Equity 181,800 Total Liabilities and Stockholders' Equity