The Irwin Batting Company manufactures wood baseball bats. Irwin'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. Irwin sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $45; the adult bat sells for $50. Irwin's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Irwin's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: Requirements: 1. Prepare Irwin's
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The Irwin Batting Company manufactures wood baseball bats. Irwin'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. Irwin sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $45; the adult bat sells for $50. Irwin's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Irwin's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow:
Requirements:
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1.
|
Prepare
Irwin's
sales budget for the first quarter of
2025.
|
|
2.
|
Prepare
Irwin's
production budget for the first quarter of
2025.
|
|
3.
|
Prepare
Irwin's
direct materials budget, direct labor budget, and manufacturing 2025.
Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. |
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4.
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Prepare
Irwin's
cost of goods sold budget for the first quarter of
2025.
|
|
5.
|
Prepare
Irwin's
selling and administrative expense budget for the first quarter of
2025.
|
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