Question

The Huber Batting Company manufactures wood baseball bats. Huber​'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. Huber sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $35​; the adult bat sells for $50. Huber​'s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Huber​'s balance sheet for December 31​, 2018​, and other data for the first quarter of 2019​follow:

Requirement 1. Prepare Huber​'s sales budget for the first quarter of 2019.

Huber Batting Company
Sales Budget
For the Quarter Ended March 31, 2019
	Youth	Adult
	Bats	Bats	Total
Budgeted bats to be sold
Sales price per unit
Total sales

Requirement 2. Prepare Huber​'s production budget for the first quarter of 2019.

Huber 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 Huber​'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.

Huber 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
Direct materials cost per ounce
Budgeted cost of direct materials

Prepare the direct labor budget. ​(Enter any hours per unit amounts to two decimal​ places, X.XX.) Review the production budget you prepared above.

Data Table

Huber Batting Company
Balance Sheet
December 31, 2018
Assets
Current Assets:
Cash	$10,000
Accounts Receivable	20,300
Raw Materials Inventory	6,000
Finished Goods Inventory	22,650
Total Current Assets		$58,950
Property, Plant, and Equipment:
Equipment	120,000
Less: Accumulated Depreciation	(20,000)	100,000
Total Assets		$158,950

Liabilities
Current Liabilities:
Accounts Payable			$8,000
Stockholders' Equity
Common Stock, no par		$120,000

More Info

a.	Budgeted sales are 1,900 youth bats and 3,600 adult bats.
b.	Finished Goods Inventory on December 31​, 2018​, consists of 600 youth bats at $19 each and 750 adult bats at $15 each.
c.	Desired ending Finished Goods Inventory is 220 youth bats and 320 adult​bats; FIFO inventory costing method is used.
d.	Direct materials requirements are 52 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​, 2018​, consists of 30,000 ounces of wood at $0.20 per ounce.
f.	Desired ending Raw Materials Inventory is 30,000 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 $400 per quarter in depreciation and $7,104 per quarter for other​ costs, such as insurance and property taxes.
j.	Fixed selling and administrative expenses include $11,000 per quarter for​salaries; $1,500 per quarter for​ rent; $1,500 per quarter for​ insurance; and $450 per quarter for depreciation.
k.	Variable selling and administrative expenses include supplies at 1​% of sales.

Answer 1