Question

The Haney Batting Company manufactures wood baseball bats. Haney'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. Haney sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $20; the adult bat sells for $45. Haney's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Haney's balance sheet for December 31, 2018, and other data for the first quarter of 2019 follow: 囲(Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the requirements Requirement 1. Prepare Haney's sales budget for the first quarter of 2019 Haney Batting Company Sales Budget For the Quarter Ended March 31, 2019 Youth Bats Adult Bats Total Budgeted bats to be sold Sales price per unit Total sales Requirement 2. Prepare Haney's production budget for the first quarter of 2019 Haney Batting Company Production Budget For the Quarter Ended March 31, 2019 Youth Adult Bats Bats Total Plus: Total bats needed Less Budgeted bats to be produced Requirement 3. Prepare Haney'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 Begin by preparing the direct materials budget Haney Batting Company Direct Materials Budget For the Quarter Ended March 31, 2019 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

Answer 1

Sales Manufacturing Overhead Budget Selling and Admin Expense Budget Total variable S&D Expense(2% of Sales) Fixed S&D Expense Youth Bats Adult Bats Total Youth Bats Adult Bats $ 2,990.00 3 Budgeted Bats to be sold 4 Sales Price per unit 5 Total Sales Budgeted Bats to be produced VOH Cost per Bat Budgeted VOH Budgeted FOH 1270 S 20.00 S S 28,000.00 1,21,500.00 S1,49,500.00 Salaries 15,000.00 S 5,000.00 S 1,200.00 S 50.00 24,240.00 5 1,143.00 S 2,259.00 3,402.00 Production Budget Youth Bats Adult Bats Total 5 800.00 5 334.00 1,134.00 e and Property Taxes 8 Budgeted Bats to be sold 9 Plus: Desired Closing FG Inventory 10 Total Bats needed 11 Less: Beginning FG Inventory 12 Budgeted Bats to be produced 1400 Total S&D expense Budget Total Budgeted FOH Budgeted Manufacturing Overhead costs 4780 1000 4,536.00 Direct labor Hours Budgeted Manufacturing Overhead costs Predetemined Overhead allocation rate 5 4,536.00 Youth Bats Adult Bats Total 15 Budgeted Bats to be produced 16 Direct Material per BatiOunces) 17 Direct material needed for Production 18 Plus: Desired ending RM 19 Total direct materials needed 20 Less: Beginning RM inventory 21 Budeeted Purchases of direct Material 22 Direct Material cost Per ounce 23 Budeeted cost for Direct Material 2510 Projected manufacturing Cost per Bat Youth Bats Adult Bats Direct Material cost per Bat Direct Labor cost Per Bat Manufacturing Overhead Total Projected Manufacturing Cost per Bat 12.00 231940 14.40 S 5 40.788.00 Cost of Goods sold Budget Direct Labor Budget Youth Bats S Adult Bats S Total Youth Bats Adult Bats Total Total Projected Manufacturing Cost per Bat Bats Produced and Sold in 1st Quarter, 2019 Total Budgetd COGS 14.40 18.00 26 Budgeted Bats to be produced 27 Direct labor for each Bat hours) 28 Direct La bor needed for Production 29 Direct labor cost per hour 30 Budgeted Direct Labor Cost 2510 20,160.0048,600.00 68,760.00 16.00 16.00 $ 6,096.00 12,048.00 18,144.00

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