The Sharpe Batting Company manufactures wood baseball bats. Sharpe$\text{'}$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. Sharpe sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $ $60$; the adult bat sells for $ $70.$ Sharpe$\text{'}$s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Sharpe$\text{'}$s balance sheet for December $31,2024,$ and other data for the first quarter of $2025$follow:

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Question content area bottom

Part $1$

Requirement $1.$ Prepare Sharpe$\text{'}$s sales budget for the first quarter of $2025.$

Sharpe 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

Part $2$

Requirement $2.$ Prepare Sharpe$\text{'}$s production budget for the first quarter of $2025.$

Sharpe Batting Company

Production Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Plus:

Total bats needed

Less:

Budgeted bats to be produced

Part $3$

Requirement $3.$ Prepare Sharpe$\text{'}$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.

Begin by preparing the direct materials budget.

Sharpe Batting Company

Direct Materials Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Direct materials per bat $($ounces$)$

Direct materials needed for production

Plus:

Total direct materials needed

Less:

Budgeted purchases of direct materials

Direct materials cost per ounce

Budgeted cost of direct materials

Part $4$

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

Review the production budget you prepared above.LOADING...

Sharpe Batting Company

Direct Labor Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Direct labor hours needed for production

Budgeted direct labor cost

Part $5$

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.$)$

Review the production budget you prepared above.LOADING...

Review the direct labor budget you prepared above.LOADING...

Sharpe Batting Company

Manufacturing Overhead Budget

For the Quarter Ended March $31,2025$

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

Part $6$

Requirement $4.$ Prepare Sharpe$\text{'}$s cost of goods sold budget for the first quarter of $2025.$

Before preparing the cost of goods sold$$ budget, calculate the projected manufacturing cost per bat for $2025.($Round all amounts to the nearest$$ cent.$)$

Youth Bats

Adult Bats

Total projected manufacturing cost per bat for $2025$

Part $7$

Now prepare the cost of goods sold budget.

Review the sales budget you prepared above.LOADING...

Review the production budget you prepared above.LOADING...

Sharpe Batting Company

Cost of Goods Sold Budget

For the Quarter Ended March $31,2025$

Youth

Adult

Bats

Bats

Total

Bats produced and sold in $1$st quarter of $2025$

Total budgeted cost of goods sold

Part $8$

Requirement $5.$ Prepare Sharpe$\text{'}$s selling and administrative expense budget for the first quarter of $2025.$

Review the sales budget you prepared above.LOADING...

Sharpe Batting Company

Selling and Administrative Expense Budget

For the Quarter Ended March $31,2025$