Question

a.

Budgeted sales are

2 comma 0002,000

youth bats and

2 comma 8002,800

adult bats.

b.

Finished Goods Inventory on

DecemberDecember

3131

consists of

250250

youth bats at

$ 18$18

each and

520520

adult bats at

$ 17$17

each.

c.

Desired ending Finished Goods Inventory is

350350

youth bats and

400400

adult​bats; FIFO inventory costing method is used.

d.

Direct materials cost is

$ 9$9

per youth bat and

$ 5$5

per adult bat.

e.

Desired ending Raw Materials Inventory is

$ 11 comma 000$11,000

​(indirect materials are insignificant and not considered for budgeting​ purposes).

f.

Each bat requires

0.40.4

hours of direct​ labor; direct labor costs average

$ 16$16

per hour.

g.

Variable manufacturing overhead is

$ 0.80$0.80

per bat.

h.

Fixed manufacturing overhead includes

$ 1 comma 000$1,000

per quarter in depreciation and

$ 10 comma 472$10,472

per quarter for other​ costs, such as insurance and property taxes.

i.

Fixed selling and administrative expenses include

$ 10 comma 000$10,000

per quarter for​salaries;

$ 1 comma 500$1,500

per quarter for​ rent;

$ 1 comma 300$1,300

per quarter for​ insurance; and

$ 400$400

per quarter for depreciation.

j.

Variable selling and administrative expenses include supplies at

44​%

of sales.

Requirement 4. Prepare

PuckettPuckett​'s

cost of goods sold budget for the first quarter of

20172017.

Before preparing the cost of goods sold​ budget, calculate the projected manufacturing cost per bat for

20172017.

​(Round all amounts to the nearest​ cent.)

	Youth Bats	Adult Bats
Direct materials cost per bat	$9.00	$5.00
Direct labor cost per bat	6.40	6.40
Manufacturing overhead cost per bat	3.20	3.20
Total projected manufacturing cost per bat for 2017	$18.60	$14.60

Now prepare the cost of goods sold budget.

Review the sales budget you prepared above.

LOADING...

Review the production budget you prepared above.

LOADING...

Puckett Batting Company
Cost of Goods Sold Budget
For the Quarter Ended March 31, 2017
	Youth	Adult
	Bats	Bats	Total
Beginning inventory	$4,500	$8,840	$13,340
Bats produced and sold in 1st quarter of 2017
Total budgeted cost of goods sold

Answer 1

			Youth Bat	Audult Bat	Total
	A	Budgeted Sales Quantity	2000	2800	4800
	B	Beginning Finished goods inventory	250	520	770
	C	Ending Finished goods inventory	350	400	750
	D=A+C-B	Quantity to be manufactured	2100	2680	4780
	E	Direct Material cost per bat	$9	$5
	F=D*E	Total Direct material Cost	$18,900	$13,400	$32,300
	G	Direct labor hour per bat	0.4	0.4
	H	Direct Labor cost per hour	$16	$16
	I=G*H	Direct labor cost per bat	$6.40	$6.40
	J=D*I	Total Direct Labor Cost	$13,440	$17,152	$30,592
	K	Variable manufacturing overhead per bat	$0.80	$0.80
	L=D*K	Total Variable Manufaturing Overhead	$1,680	$2,144	$3,824
	M	Depreciation expenses			$1,000
	N	Other fixed manufacturing expenses			$10,472
	P=L+M+N	Total Manufacturing Overhead expenses			$15,296
	Q=F+J+P	Total Manufacturing Costs in the quarter			$78,188
	R=Q/D	Projected cost per bat			$16.36
		COST OF GOODS   SOLD
	B	Beginning Finished goods inventory	250	520	770
	S	Cost per Bat in beginning finished goods	$18	$17
	T=B*S	Beginning finished goods in dollar	$4,500	$8,840	$13,340
	U	Total Manufacturing Costs			$78,188
	C	Ending Finished goods inventory	350	400	750
	V	Cost per Bat in ending finished goods			$16.36	(FIFO METHOD IS USED , Beginning inventory will be sold first)
	W=C*V	Ending Finished goods inventory in dollar			$12,268
	X=T+U-W	Cost of Goods Sold			$79,260
		COST OF GOODS SOLD	$79,260