The Mata Batting Company manufactures wood baseball bats. Mata’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. Mata sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $ 35; the adult bat sells for $ 65. Mata’s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Mata’s balance sheet for December 31, 2014, follows:

Other data for Mata Batting Company:
a. Budgeted sales are 1,500 youth bats and 3,000 adult bats.
b. Finished Goods Inventory on December 31 consists of 500 youth bats at $ 15 each and 750 adult bats at $ 17 each.
c. Desired ending Finished Goods Inventory is 300 youth bats and 450 adult bats; FIFO inventory costing method is used.
d. Direct materials cost is $ 8 per youth bat and $ 10 per adult bat.
e. Desired ending Raw Materials Inventory is $ 11,000 (indirect materials are in-significant and not considered for budgeting purposes).
f. Each bat requires 0.25 hours of direct labor; direct labor costs average $ 20 per hour.
g. Variable manufacturing overhead is $ 0.75 per bat.
h. Fixed manufacturing overhead includes $ 1,000 per quarter in depreciation and $ 2,000 per quarter for other costs, such as insurance and property taxes.
i. Fixed selling and administrative expenses include $ 10,000 per quarter for salaries; $ 3,000 per quarter for rent; $ 1,500 per quarter for insurance; and $ 300 per quarter for depreciation.
j. Variable selling and administrative expenses include supplies at 1% of sales.

1. Prepare Mata’s sales budget for the first quarter of 2015.
2. Prepare Mata’s production budget for the first quarter of 2015.
3. Prepare Mata’s direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of 2015. Round the predetermined over-head allocation rate to two decimal places.
4. Prepare Mata’s cost of goods sold budget for the first quarter of 2015.
5. Prepare Mata’s selling and administrative expense budget for the first quarter of2015.

  • CreatedJanuary 16, 2015
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