Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Sosa Batting Company mamafactures wood basobail bats. Sosa's two primary products are a youth bat, des oned for children and young teens, and an

image text in transcribed
image text in transcribed
image text in transcribed
The Sosa Batting Company mamafactures wood basobail bats. Sosa's two primary products are a youth bat, des oned for children and young teens, and an adult bat, designed for high school and colege-aged piayors. Sosa selis the buts to sporting goods stores and all sales are on account. The youth bat selts for 530 , the adult bat selts for 510 . Sosar's highest nales volume is in the first three months of the year as retallers prepare for the spring baseball season. Sosa's balance sheet for Deoember 31, 2024, and other data for the first quarter of 2025 follow. (Click the icon to vlewy the balance sheet.) 1. (Click the icen to view the other datia ) Read the coguirements Requirement 2. Prepare Sosa's production budget for the first quarter of 2025 . Requirement 3. Prepare Sosa's direct materials budget, direct labor budget, and manufacturing overtead 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. Beain bv preparing the direct materials budget. More info a. Budgeted sales are 1,500 youth bats and 3,400 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 450 youth bats at $10 each and 840 adult bats at $13 each. c. Desired ending Finished Goods Inventory is 550 youth bats and 520 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 44 ounces of wood per youth bat and 54 ounces of wood per adult bat. The cost of wood is $0.20 per ounce. e. Raw Materials Inventory on December 31,2024 , consists of 23,000 ounces of wood at $0.20 per ounce. f. Desired ending Raw Materials Inventory is 23,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.3 hours of direct labor; direct labor costs average $16 per hour. h. Variable manufacturing overhead is $0.90 per bat. i. Fixed manufacturing overhead includes $700 per quarter in depreciation and $9,128 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $14,000 per quarter for salaries; $5,500 per quarter for rent; $2,000 per quarter for insurance; and $450 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Data table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internet Market Research Audit

Authors: Cambridge

1st Edition

1902433742, 978-1902433745

More Books

Students also viewed these Accounting questions