a. Budgeted sales are 2,000 youth bats and 2,2,900 adult bats.b. Finished Goods Inventory on December 31, 2024, consists of 200 youth bats at $15each and 650 adult bats at $20 each.c. Desired ending Finished Goods Inventory is 220 youth bats and 400 adult bats;FIFO inventory costing method is used.d. Direct materials requirements are 42 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 22,000 ounces of wood at 50.40 per ounce.f. Desired ending Raw Materials Inventory is 22,000 ounces (indirect materials are insignificant and not considered for budgeting purposes).g. Each bat requires 0.6 hours of direct labor; direct labor costs average $12 per hour.h. Variable manufacturing overhead is $0.90 per bati. Fixed manufacturing overhead includes $500 per quarter in depreciation and $3,703 per quarter for other costs, such as insurance and property taxes.Fixed selling and administrative expenses include $6,000 per quarter for salaries: $3,000 per quarter for rent; $1,200 per quarter for insurance, and $400 per quarter for depreciation.k. Variable selling and administrative expenses include supplies at 3% of sales. Prepare Sharpe's sales budget for the first quarter of 2025.2. Prepare Sharpe's production budget for the first quarter of 2025.3. Prepare Sharpe's direct materials budget, direct labor budget, 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 Sharpe's cost of goods sold budget for the first quarter of 2025.5. Prepare Sharpe's selling and administrative expense budget for the first quarter of 2025. **Sharpe Batting Company Balance Sheet****December 31, 2024**---**Assets**- **Current Assets:** - Cash: $32,000 - Accounts Receivable: $20,300 - Raw Materials Inventory: $8,800 - Finished Goods Inventory: $16,000 **Total Current Assets:** $77,100- **Property, Plant, and Equipment:** - Equipment: $135,000 - Less: Accumulated Depreciation: ($10,000) **Net Property, Plant, and Equipment:** $125,000 **Total Assets:** $202,100---**Liabilities**- **Current Liabilities:** - Accounts Payable: $17,300---**Stockholders' Equity**- Common Stock, no par: $80,000- Retained Earnings: $104,800 **Total Stockholders' Equity:** $184,800---**Total Liabilities and Stockholders' Equity:** $202,100---### Explanation:This balance sheet provides a snapshot of Sharpe Batting Company's financial position as of December 31, 2024. It lists the company's assets, liabilities, and stockholders' equity, highlighting its total assets at $202,100, which balance out with the combined total of liabilities and stockholders' equity. The net value of property, plant, and equipment accounts for depreciation, and stockholder equity is derived from common stock and retained earnings. # Sharpe Batting Company: Budget Preparation for Q1 2025The Sharpe Batting Company manufactures wood baseball bats with two primary products: a youth bat and an adult bat. This session outlines Sharpe’s budgeting strategy for the first quarter of 2025.---## Sales Budget### Sharpe Batting Company**Sales Budget for the Quarter Ended March 31, 2025**- **Columns:** - Youth Bats - Adult Bats - Total- **Rows:** - Budgeted bats to be sold - Sales price per unit - Total sales---## Production Budget### Sharpe Batting Company**Production Budget for the Quarter Ended March 31, 2025**- **Columns:** - Youth Bats - Adult Bats - Total- **Rows:** - Plus: Total bats needed - Less: Budgeted bats to be produced---## Direct Materials Budget### Sharpe Batting Company**Direct Materials Budget for the Quarter Ended March 31, 2025**- **Columns:** - Youth Bats - Adult Bats - Total- **Rows:** - Direct materials per bat (ounces) - Direct materials needed for production---## Additional Requirements- **Prepare Direct Labor, Manufacturing Overhead Budgets:** - Use the predetermined overhead allocation rate to two decimal places. - The base for overhead allocation is direct labor hours.By following this structured approach, Sharpe ensures an efficient and strategic budget preparation for the upcoming quarter.

Name: a. Budgeted sales are 2,000 youth bats and 2,2,900 adult bats.b. Finis
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Description: a. Budgeted sales are 2,000 youth bats and 2,2,900 adult bats.b. Finished Goods Inventory on December 31, 2024, consists of 200 youth bats at $15each and 650 adult bats at $20 each.c. Desired ending Finished Goods Inventory is 220 youth bats and 400

Budgeting is a financial plan that helps organization in effective utilization of its resources. The…

Answered: The Sharpe Batting Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a. Budgeted sales are 2,000 youth bats and 2,
2,900 adult bats.
b. Finished Goods Inventory on December 31, 2024, consists of 200 youth bats at $15
each and 650 adult bats at $20 each.
c. Desired ending Finished Goods Inventory is 220 youth bats and 400 adult bats;
FIFO inventory costing method is used.
d. Direct materials requirements are 42 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 22,000 ounces of wood at 50.40 per ounce.
f. Desired ending Raw Materials Inventory is 22,000 ounces (indirect materials are insignificant and not considered for budgeting purposes).
g. Each bat requires 0.6 hours of direct labor; direct labor costs average $12 per hour.
h. Variable manufacturing overhead is $0.90 per bat
i. Fixed manufacturing overhead includes $500 per quarter in depreciation and $3,703 per quarter for other costs, such as insurance and property taxes.
Fixed selling and administrative expenses include $6,000 per quarter for salaries: $3,000 per quarter for rent; $1,200 per quarter for insurance, and $400 per quarter for depreciation.
k. Variable selling and administrative expenses include supplies at 3% of sales.

Prepare Sharpe's sales budget for the first quarter of 2025.
2. Prepare Sharpe's production budget for the first quarter of 2025.
3. Prepare Sharpe's direct materials budget, direct labor budget, 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 Sharpe's cost of goods sold budget for the first quarter of 2025.
5. Prepare Sharpe's selling and administrative expense budget for the first quarter of 2025.

**Sharpe Batting Company Balance Sheet**

**December 31, 2024**

---

**Assets**

- **Current Assets:**
- Cash: $32,000
- Accounts Receivable: $20,300
- Raw Materials Inventory: $8,800
- Finished Goods Inventory: $16,000

**Total Current Assets:** $77,100

- **Property, Plant, and Equipment:**
- Equipment: $135,000
- Less: Accumulated Depreciation: ($10,000)

**Net Property, Plant, and Equipment:** $125,000

**Total Assets:** $202,100

---

**Liabilities**

- **Current Liabilities:**
- Accounts Payable: $17,300

---

**Stockholders' Equity**

- Common Stock, no par: $80,000
- Retained Earnings: $104,800

**Total Stockholders' Equity:** $184,800

---

**Total Liabilities and Stockholders' Equity:** $202,100

---

### Explanation:

This balance sheet provides a snapshot of Sharpe Batting Company's financial position as of December 31, 2024. It lists the company's assets, liabilities, and stockholders' equity, highlighting its total assets at $202,100, which balance out with the combined total of liabilities and stockholders' equity. The net value of property, plant, and equipment accounts for depreciation, and stockholder equity is derived from common stock and retained earnings.

# Sharpe Batting Company: Budget Preparation for Q1 2025

The Sharpe Batting Company manufactures wood baseball bats with two primary products: a youth bat and an adult bat. This session outlines Sharpe’s budgeting strategy for the first quarter of 2025.

---

## Sales Budget

### Sharpe Batting Company
**Sales Budget for the Quarter Ended March 31, 2025**

- **Columns:**
- Youth Bats
- Adult Bats
- Total

- **Rows:**
- Budgeted bats to be sold
- Sales price per unit
- Total sales

---

## Production Budget

### Sharpe Batting Company
**Production Budget for the Quarter Ended March 31, 2025**

- **Columns:**
- Youth Bats
- Adult Bats
- Total

- **Rows:**
- Plus: Total bats needed
- Less: Budgeted bats to be produced

---

## Direct Materials Budget

### Sharpe Batting Company
**Direct Materials Budget for the Quarter Ended March 31, 2025**

- **Columns:**
- Youth Bats
- Adult Bats
- Total

- **Rows:**
- Direct materials per bat (ounces)
- Direct materials needed for production

---

## Additional Requirements

- **Prepare Direct Labor, Manufacturing Overhead Budgets:**
- Use the predetermined overhead allocation rate to two decimal places.
- The base for overhead allocation is direct labor hours.

By following this structured approach, Sharpe ensures an efficient and strategic budget preparation for the upcoming quarter.

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