=+Direct manufacturing labour $8 per direct manufacturing labour-hour Input quantities per unit of output Large Giant Direct materials Sugar 0.25 kg 0.5 kg Sticks 1 1 Direct manufacturing labour-hours (DMLH) 0.2 hour 0.25 hour Set-up hours per batch 0.08 hour 0.09 hour Inventory information, direct materials Sugar Sticks Beginning inventory 125 kg 350 Target ending inventory 240 kg 480 Cost of beginning inventory $64 $105 Yummy-Pop accounts for direct materials using a FIFO cost flow assumption.

Sales and inventory information, finished goods Large Giant Expected sales in units 3000 1800 Selling price $3 $4 Target ending inventory in units 300 180 Beginning inventory in units 200 150 Beginning inventory in dollars $500 $474