The following budget information has been compiled for Julius Jones Jeans, the manufacturer of the JJ Jean, for the year ended December 31, 2012.

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2012 Expected sales (pairs of jeans) 50,000 January 2012 Opening finished goods inventory (pairs) 12,000 Target Dec 31, 2012 Finished goods inventory (pairs) 15,000 January 2012 Opening finished goods inventory January 2012 Opening work-in-process inventory December 31 Target Work-in-process inventory Selling price (per pair) $720,000 $8,500 $15,500 $125 Information related to production of jeans: Quantity Required Opening Closing Opening for 1 Pair Fabric (metres) 1.6 8,500 Inventory Inventory 15,000 Inventory Cost 2012 Costs $8/metre Buttons 6 58,000 75,000 $0.25/button $9/metre $0.35/button Labour hours 2.5 $15/hour Other costs for 2012 (budgeted amount) Indirect materials Indirect labour $52,000 48,000 Production salaries 125,000 Materials handling 38,000 Utilities 189,000 Rent 198,000 Depreciation. 15,000 Selling and administrative costs 155,000