The Vang Batting Company manufactures wood baseball bats. Vang's two primary products are a youthbat, designed for children and youngteens, and an adultbat, designed for high school andcollege-aged players. Vang sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $35; the adult bat sells for $70. Vang's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Vang's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow:

Data Table

Current Assets:

Cash 32,000

Accounts Receivable 22,500

Raw Materials Inventory 4,050

Finished Goods Inventory 14,630

Total Current Assets 73,180

Property, Plant, and Equipment

Equipment 145,000

Less: Accumulated Depreciation (70,000) 75,000

Total Assets $148,180

Liabilities

Current Liabilities:

Accounts Payable $12,800

Stockholders' Equity

Common Stock, no par $80,000

Retained Earnings 55,380

Total Stockholders' Equity 135,380

Total Liabilities and Stockholders' Equity $148,180

a. Budgeted sales are 1,900 youth bats and 3,500 adult bats.

b. Finished Goods Inventory on December 31, 2024, consists of 350 youth bats at $13 each and 720 adult bats at $14 each.

c. Desired ending Finished Goods Inventory is 500 youth bats and 500 adult bats; FIFO inventory costing method is used.

d. Direct materials requirements are 44 ounces of wood per youth bat and 60 ounces of wood per adult bat. The cost of wood is $0.15 per ounce.

e. Raw Materials Inventory on December 31, 2024, consists of 27,000 ounces of wood at $0.15 per ounce.

f. Desired ending Raw Materials Inventory is 27,000 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 $15 per hour.

h. Variable manufacturing overhead is $0.90 per bat.

i. Fixed manufacturing overhead includes $500 per quarter in depreciation and $21,353 per quarter for other costs, such as insurance and property taxes.

j. Fixed selling and administrative expenses include $11,000 per quarter for salaries; $1,000 per quarter for rent; $1,200 per quarter for insurance; and $250 per quarter for depreciation.

k. Variable selling and administrative expenses include supplies at 4% of sales.

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Requirements

1. Prepare Vang's sales budget for the first quarter of 2025.

2. Prepare Vang's production budget for the first quarter of 2025.

3. Prepare Vang's direct materialsbudget, direct laborbudget, 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.

4. Prepare Vang's cost of goods sold budget for the first quarter of 2025.

5. Prepare Vang's selling and administrative expense budget for the first quarter of 2025.