The Sosa Batting Company manufactures wood baseball bats. Sosa'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. Sosa sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $50; the adult bat sells for $85. Sosa's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Sosa's balance sheet for December 31,2024 , and other data for the first quarter of 2025 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the requirements. Data table Data table More info a. Budgeted sales are 1,900 youth bats and 3,600 adult bats. b. Finished Goods Inventory on December 31,2024 , consists of 550 youth bats at $13 each and 840 adult bats at $11 each. c. Desired ending Finished Goods Inventory is 100 youth bats and 320 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 40 ounces of wood per youth bat and 64 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 20,000 ounces of wood at $0.40 per ounce. f. Desired ending Raw Materials Inventory is 20,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.2 hours of direct labor; direct labor costs average $24 per hour. h. Variable manufacturing overhead is $0.40 per bat. i. Fixed manufacturing overhead includes $500 per quarter in depreciation and $7,654 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $7,000 per quarter for salaries; $5,500 per quarter for rent; $1,900 per quarter for insurance; and $50 per quarter for b. Finisned Goods Inventory on vecember 31,2024 , consists or 550 youth bats at $13 each and 840 adult bats at $11 each. c. Desired ending Finished Goods Inventory is 100 youth bats and 320 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 40 ounces of wood per youth bat and 64 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 20,000 ounces of wood at $0.40 per ounce. f. Desired ending Raw Materials Inventory is 20,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.2 hours of direct labor; direct labor costs average $24 per hour. h. Variable manufacturing overhead is $0.40 per bat. i. Fixed manufacturing overhead includes $500 per quarter in depreciation and $7,654 per quarter for other costs, such as insurance and property taxes. 1. Fixed selling and administrative expenses include $7,000 per quarter for salaries; $5,500 per quarter for rent; $1,900 per quarter for insurance; and $50 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. Requirement 1. Prepare Sosa's sales budget for the first quarter of 2025. ousa patuiny wumpaily Production Budget For the Quarter Ended March 31, 2025 For the Quarter Ended March 31, Youth Plus: Botal bats needed Less: Budgeted bats to be produced Sosa Batting Company Direct Materials Budget For the Quarter Ended March 31, 2025 Direct materials per bat (ounces) Direct materials needed for production Plus: Tntal dirert materiale naertad Review the production budget you prepared above. Sosa batting Company Direct Labor Budget For the Quarter Ended March 31, 2025 Sosa Batting Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2025 For the Quarter Ended March 31, 2025 VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Sosa'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 hearest cent.) Review the production budget you prepared above. Sosa Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2025 Total budgeted selling and administrative expense
