The Sharpe Batting Company manufactures wood baseball bats. Sharpe'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 $30; the adult bat sells for $45. Shanpe's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Sharpe's balance sheet for December 31,2018 , and other data for the first quarter of 2019 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the Sharpe Batting Company Balance Sheet December 31,2018 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities. Accounts Payable Stockholders Equity Common Stock. no par Retained Earnings $120,000 Total Stockholders Equity 38.200 Total Liabilities and Stockholders' Equity $12.500 More info a. Budgeted sales are 1,800 youth bats and 3,300 adult bats Finished Goods Inventory on December 31,2018 , consists of 500 youth bats at $18 b. each and 850 adult bats at $16 each. Desired ending Finished Goods Inventory is 220 youth bats and 320 adult bats; c. FIFO inventory costing method is used. Direct materials requirements are 44 ounces of wood per youth bat and 62 ounces d. of wood per adult bat. The cost of wood is $0.45 per ounce. Raw Materials Inventory on December 31, 2018, consists of 22,000 ounces of wood e. at $0.45 per ounce. Desired ending Raw Materials Inventory is 22,000 ounces (indirect materials are f. insignificant and not considered for budgeting purposes). g. Each bat requires 0.4 hours of direct labor; direct labor costs average $12 per hour. h. Variable manufacturing overhead is $0.40 per bat. Fixed manufacturing overhead includes $800 per quarter in depreciation and $6,064 i. per quarter for other costs, such as insurance and property taxes. Fixed selling and administrative expenses include $10,000 per quarter for salaries; $4,500 per quarter for rent; $1,800 per quarter for insurance; and $300 per quarter j. for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. Requirements 1. Prepare Sharpe's sales budget for the first quarter of 2019 2. Prepare Sharpe's production budget for the first quarter of 2019 3. Prepare Sharpe's direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of 2019 . Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. 4. Prepare Sharpe's cost of goods sold budget for the first quarter of 2019 5. Prepare Sharpe's selling and administrative expense budget for the first quarter of 2019