cial$-$managerial$-$accounting$-...$

g Objective $3$ P$-$M:$7-38$A Preparing an operating budget$-$sales, production, direct materials, direct labor, overhead, COGS, and S&A expense budgets

HR $$6$ per DLHr COGS $$49,875$

The Salma Batting Company manufactures wood baseball bats. Salma Batting Company'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. Salma Batting Company 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.$ Salma Batting Company's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Salma Batting Company's balance sheet for December $31,2025,$ follows:

$\backslash$table$[[\backslash$table$[[$SALMA BATTING COMPANY$],[$Balance Sheet December $31,2025]]],[$Assets$],[$Current Assets:$],[$Cash$,$$ $30,000,],[$Accounts Receivable,$22,500,],[$Raw Materials Inventory,$11,000,],[$Finished Goods Inventory,$20,250,],[$Total Current Assets,,$ $83,750],[$Property$,$ Plant, and Equipment:$],[$Equipment$,125,000,],[$Less: Accumulated Depreciation,$(50,000),75,000],[$Total Assets,,$ $158,750],[$Liabilities$],[$Current Liabilities:$],[$Accounts Payable,,$$12,500$

P$-$M:$7-38$A Preparing an operating budget$-$sales, production, direct materials, direct labor, overhead, COGS, and S&A expense budgets

The Salma Batting Company manufactures wood baseball bats. Salma Batting Company'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. Salma Batting Company 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.$ Salma Batting Company's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Salma Batting Company's balance sheet for December $31,2025,$ follows:

$\backslash$table$[[\backslash$table$[[$SALMA BATTING COMPANY$],[$Balance Sheet December $31,2025]]],[$Assets$],[$Current Assets:$],[$Cash$,$$ $30,000,],[$Accounts Receivable,$22,500,],[$Raw Materials Inventory,$11,000,],[$Finished Goods Inventory,$20,250,],[$Total Current Assets,,$$83,750$