The Mata Batting Company manufactures wood baseball bats. Mata$\text{'}$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. Mata sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $ $60$; the adult bat sells for $ $80.$ Mata$\text{'}$s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Mata$\text{'}$s balance sheet for December $31,2024,$ and other data for the first quarter of $2025$follow:

Mata Batting Company

Balance Sheet

December $31,2024$

Assets

Current Assets:

Cash

$$35,000$

Accounts Receivable

$22,500$

Raw Materials Inventory

$4,350$

Finished Goods Inventory

$15,640$

Total Current Assets

$$77,490$

Property, Plant, and Equipment:

Equipment

$125,000$

Less: Accumulated Depreciation

$(65,000)$

$60,000$

Total Assets

$$137,490$

Liabilities

Current Liabilities:

Accounts Payable

$$11,600$

Stockholders' Equity

Common Stock, no par

$$70,000$

Retained Earnings

$55,890$

Total Stockholders' Equity

$125,890$

Total Liabilities and Stockholders' Equity

$$137,490$

a$.$

Budgeted sales are $1,900$ youth bats and $3,500$ adult bats.

b$.$

Finished Goods Inventory on December $31,2024,$ consists of $350$ youth bats at $$20$ each and $720$ adult bats at $$12$ 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 $40$ ounces of wood per youth bat and $64$ ounces of wood per adult bat. The cost of wood is $$0\mathrm{.}15$ per ounce.

e$.$

Raw Materials Inventory on December $31,2024,$ consists of $29,000$ ounces of wood at $$0\mathrm{.}15$ 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 $0\mathrm{.}2$ hours of direct labor; direct labor costs average $$20$ per hour.

h$.$

Variable manufacturing overhead is $$0\mathrm{.}40$ per bat.

i$.$

Fixed manufacturing overhead includes $$800$ per quarter in depreciation and $$3,970$ per quarter for other costs, such as insurance and property taxes.

j$.$

Fixed selling and administrative expenses include $$13,000$ per quarter for salaries; $$1,000$ per quarter for rent; $$2,000$ per quarter for insurance; and $$350$ per quarter for depreciation.

k$.$

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