Assets Current Assets: Cash                       $20,000 Accounts Receivable               18,500 Raw Materials Inventory           9,000 Finished Goods Inventory           16,000 Total Current Assets                       $63,500 Property Plant and Equipment               130,000 Less: Accumulated Depreciation               (70,000)   60,000 Total Assets                               $123,500 Liabilities Current Liabilities: Accounts Payable                       $11,600 Stockholders’ Equity Common Stock                       $90,000 Retained Earnings                   21,900 Total Stockholders’’ Equity                   111,900 Total Liabilities and Stockholders’ Equity               $123,500 Additional Information for the first quarter of 2021 is as follows: 1

Assets Current Assets: Cash                       $20,000 Accounts Receivable               18,500 Raw Materials Inventory           9,000 Finished Goods Inventory           16,000 Total Current Assets                       $63,500 Property Plant and Equipment               130,000 Less: Accumulated Depreciation               (70,000)   60,000 Total Assets                               $123,500 Liabilities Current Liabilities: Accounts Payable                       $11,600 Stockholders’ Equity Common Stock                       $90,000 Retained Earnings                   21,900 Total Stockholders’’ Equity                   111,900 Total Liabilities and Stockholders’ Equity               $123,500 Additional Information for the first quarter of 2021 is as follows: 1.   Forecasted Sales are 1,400 youth bats and 3,300 adult bats 2.   Finished Goods Inventory on 12/31/20 includes 700 youth bats at $15 each and 550 adult bats at $10 each 3.   Desired ending Finished Goods Inventory is 220 youth bats and 300 adult bats 4.   Direct materials requirements are 40 ounces of wood for youth bats and 70 ounces of wood for adult bats. The cost of wood is $0.10 per ounce. 5.   Raw Materials Inventory on 12/31/20 includes 90,000 ounces of wood at $0.10 per ounce. 6.   Desired ending Raw Materials Inventory is 90,000 ounces. 7.   Each bat requires 0.4 hours of direct labor at $26 per hour. 8.   Variable manufacturing overhead is $0.30 per bat. 9.   Fixed manufacturing overhead includes $1,300 per quarter in depreciation and $14,977 per quarter for other costs, such as insurance and taxes. 10.   Fixed selling and administrative expenses include $13,000 per quarter for salaries, $3,500 per quarter for rent, $1,400 per quarter for insurance, and $450 per quarter for depreciation 11.   Variable selling and administrative expenses include supplies at 1% of sales. The Batting Company manufactures wood baseball bats. Two primary products are a youth bat and an adult bat. They sell the bats to sporting goods companies. All sales are made on account. The youth bat sells for $35. The adult bat sells for $50. The highest sales occur in the first quarter of the year as retailers prepare for spring baseball season. Create sales budget and production budget based on the above information.

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