The Puckett Batting Company manufactures wood baseball bats. Puckett'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.
Puckett sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $45 the adult bat sells for $55. Puckett's highest sales volume is in the first three months of the year as retailers prepare
for the spring baseball season. Puckett's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow
More info a. Budgeted sales are 1,500 youth bats and 3,500 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 400 youth bats at $10 each and 850 adult bats at $19 each. c. Desired ending Finished Goods Inventory is 300 youth bats and 320 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 $0.40 per ounce. e. Raw Materials Inventory on December 31, 2024, consists of 21,000 ounces of wood at $0.40 per ounce. 1. Desired ending Raw Materials Inventory is 21,000 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 $12 per hour. h. Variable manufacturing overhead is $0.50 per bal. Puckett Batting Company Balance Sheet December 31, 2024 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory 40,000 25,400 8,400 20.150 A Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Accounts Payable Liabilities Stockholders' Equity 160,000 (70,000) 93,950 90,000 183,950 $ 8.000 $ $ Total Assets Current Liabilities: Accounts Payable Common Stock, no par Retained Earnings Liabilities Stockholders' Equity $ Total Stockholders' Equity Total Liabilities and Stockholders' Equity 130,000 45,950 $ $ 183,950 8,000 175,950 183,950 Requirement 1. Prepare Puckett's sales budget for the first quarter of 2025. Puckett 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 Puckett Batting Company Production Budget For the Quarter Ended March 31, 2025 Youth Bats Plus Total bats needed Less: Budgeted bats to be produced Adult Bats Total Begin by preparing the direct materials budget. Direct materials per bat (ounces) Direct materials needed for production Plus: Puckett Batting Company Direct Materials Budget For the Quarter Ended March 31, 2025 Youth Bats Adult Bats Total Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials Direct Labor Budget For the Quarter Ended March 31, 2025 Youth Bats Direct labor hours needed for production Budgeted direct labor cost Adult Bats Total Manufacturing Overhead Budget For the Quarter Ended March 31, 2025 Youth Bats VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Adult Bats Total Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Puckett's cost of goods sold budget for the first quarter of 2025. Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2025. (Re Total projected manufacturing cost per bat for 2025 Youth Bats Adult Bats Puckett Batting Company Cost of Goods Sold Budget For the Quarter Ended March 31, 2025 Youth Bats Bats produced and sold in 1st quarter of 2025 Total budgeted cost of goods sold Adult Bats Total Puckett Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2025 Total budgeted selling and administrative expense
