The Mata Batting Company manufactures wood baseball bats. Mata'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

$ 20; the adult bat sells for $80. Mata's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Mata's balance sheet for December 312016, follows:

Other data for Mata Batting Company for the first quarter of

2017:

Mata Batting Company
Balance Sheet
December 31, 2016
Assets
Current Assets:
Cash		$30,000
Accounts Receivable		22,500
Raw Materials Inventory		10,000
Finished Goods Inventory		23,050
Total Current Assets			$85,550
Property, Plant, and Equipment:
Equipment		125,000
Less: Accumulated Depreciation		(30,000)	95,000
Total Assets			$180,550
Liabilities
Current Liabilities:
Accounts Payable						$11,600
Stockholders' Equity
Common Stock, no par				$150,000
Retained Earnings				18,950
Total Stockholders' Equity						168,950
Total Liabilities and Stockholders' Equity						$180,550

a.Budgeted sales are 2,000 youth bats and 3,200 adult bats.

b.Finished Goods Inventory on December 31 consists of 600 youth bats at $ 20 each and 850 adult bats at $ 13each.

c.Desired ending Finished Goods Inventory is 150 youth bats and 500 adult bats; FIFO inventory costing method is used.

d.Direct materials cost is $11 per youth bat and $8 per adult bat.

e.Desired ending Raw Materials Inventory is $10,000 (indirect materials are insignificant and not considered for budgeting purposes).

f.Each bat requires 0.4 hours of direct labor; direct labor costs average $ 12 per hour.

g.Variable manufacturing overhead is $0.40 per bat.

h.Fixed manufacturing overhead includes $900 per quarter in depreciation and$6,140 per quarter for other costs, such as insurance and property taxes.

i.Fixed selling and administrative expenses include $9,000 per quarter for salaries; $6,000 per quarter for rent; $1,700 per quarter for insurance; and $100 per quarter for depreciation.

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

Requirement 1. Prepare Mata's sales budget for the first quarter of 2017.

Mata Batting Company
Sales Budget
For the Quarter Ended March 31, 2017
	Youth	Adult
	Bats	Bats	Total
Budgeted bats to be sold
Sales price per unit
Total sales

Requirement 2. Prepare Mata's production budget for the first quarter of 2017.

Mata Batting Company
Production Budget
For the Quarter Ended March 31, 2017
		Youth	Adult
		Bats	Bats	Total
Plus:
Total bats needed
Less:
Budgeted bats to be produced
The answer choices are: bats in beginning inventory, Budgeted bats to be sold, budgeted bats to be producedand desired bats in ending inventory.

Requirement 3. Prepare Mata's direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of

2017. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours.

Begin by preparing the direct materials budget.

Mata Batting Company
Direct Materials Budget
For the Quarter Ended March 31, 2017
		Youth	Adult
		Bats	Bats	Total
Direct materials cost per unit
Direct materials needed for production
Plus:
Total direct materials needed
Less:
Budgeted purchases of direct materials The answer choices are: bats in beginning inventory, Budgeted bats to be sold, budgeted bats to be produced and desired bats in ending inventory.

Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X.XX.)

Mata Batting Company
Direct Labor Budget
For the Quarter Ended March 31, 2017
	Youth	Adult
	Bats	Bats	Total
Direct labor hours needed for production
Budgeted direct labor cost The answer choices are: bats in beginning inventory, Budgeted bats to be sold, budgeted bats to be produced and desired bats in ending inventory, direct labor cost per hour, direct labor hour per unit.

Prepare the manufacturing overhead budget. (Enter any per unit amounts to two decimal places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.)

Mata Tire Company
Manufacturing Overhead Budget
For the Quarter Ended March 31, 2017
		Youth	Adult
		Bats	Bats	Total
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
The answer choices are budgeted bats to be produced and budgeted bats to be sold.

Requirement 4. Prepare

Mata's cost of goods sold budget for the first quarter of 2017.

Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for

2017.

(Round all amounts to the nearest cent.)

	Youth Bats	Adult Bats
Total projected manufacturing cost per bat for 2017

Now prepare the cost of goods sold budget.

Mata Batting Company
Cost of Goods Sold Budget
For the Quarter Ended March 31, 2017
	Youth	Adult
	Bats	Bats	Total
Bats produced and sold in 1st quarter of 2017
Total budgeted cost of goods sold

Requirement 5. Prepare Mata's selling and administrative expense budget for the first quarter of

2017.

Mata Batting Company
Selling and Administrative Expense Budget
For the Quarter Ended March 31, 2017
Total budgeted selling and administrative expense

The answer choices are direct labor cost per bat, direct materials cost per bat, manufacturing overhead cost per bat, selling price per bat.