Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Austin, Inc. manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are

Austin, Inc. manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $2 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets:

Austin projects sales of 350, 400, 450, and 300 kits for the next four quarters. Austin 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.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Austin, Inc. manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $2 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Austin projects sales of 350,400,450, and 300 kits for the next four quarters. Austin 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, $ ) Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter " 0 " for zero balances.) Reference Reference Reference Help me solve this Reference

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1713479397, 978-1713479390

More Books

Students also viewed these Accounting questions