3 5-25

view the budgets.) erence Kelvin, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Total Quarter 250 150 300 360 3 1,060 3 3 3 3 450 Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed 750 216 1,080 90 900 250 3,180 250 180 966 1,170 630 1,150 3,430 ARA Reference 630 1.150 180 3,430 910 90 540 5 s 970 5S 2,520 5 Total direct materials needed 966 1,170 Less: Direct materials in beginning inventory 910 216 Budgeted purchases of direct materials 56 954 Direct materials cost per ounce 5 s 5 s Budgeted cost of direct materials purchases 280|| 4,770 $ Kelvin, Inc. Direct Labor Budget For the Year Ended December 31 2,700 4,850 $ 12,600 First Second Third Fourth Quarter Quarter Quarter Quarter Total First Second Third Fourth Quarter Quarter Quarter Quarter Total 250 0.25 360 0.25 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 150 0.25 300 0.25 1,060 0.25 62.50 55$ 90.00 55$ 37.50 55 $ 75.00 55$ 265.00 55 Budgeted direct labor cost 3,438$ 4,950 $ 2,063 $ 4,125$ 14,575 Kelvin, Inc. Manufacturing Overhead Budget For the Year Ended December 31 Fourth Quarter Total For the Year Ended December 31 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 250 360 150 VOH cost per kit 0.50 $ 0.50 $ 0.50 S Budgeted VOH $ 125.00 $ 180.00 $ 75.00 $ 130.00 130.00 Budgeted FOH 130.00 S 255.00 $ 310.00||$ 205.00 $ Budgeted manufacturing overhead costs 300 0.50 $ 1,060 0.50 $ 150.00 $ 130.00 530.00 520.00 $ 280.00 $ 1,050.00 62.50 37.50 265.00 75.00 Direct labor hours 90.00 Reference Quarter Quarter Quarter Quarter Total 250 150 360 0.50 $ 300 0.50 $ 1,060 0.50 S 0.50||$ 0.50 $ Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs 125.00 $ 130.00 180.00 $ 130.00 75.00 $ 130.00 150.00 $ 130.00 530.00 520.00 255.00 $ 310.00 $ 205.00$ 280.00 1,050.00 62.50 90.00 37.50 265.00 75.00 Direct labor hours Budgeted manufacturing overhead costs $ $ 1,050.00 3.96 Predetermined overhead allocation rate Kelvin, Inc. manufactures model airplane kits. Direct materials are three ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.25 hours of direct labor at an average cost of 555 per hour. Manufacturing overhoed is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: Click the icon to view the budgets.) Kelvin projects sales of 200, 300, 700, and 600 kits for the next four quarters, Kelvin has no kits in beginning inventory Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, SX.XX.) Total projected manufacturing cost per kit First Second Third Fourth Quarter Quarter Quarter Quarter Total $ 0 $ 0 Beginning inventory Kits produced and sold Total budgeted cost of goods sold