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Cameron, Inc. manufactures model airplane kits and projects production at 5 5 0 , 5 3 0 , 4 0 0 , and 7 5

Cameron, Inc. manufactures model airplane kits and projects production at 550,530,400, and 750 kits for the next four quarters.
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Prepare Cameron's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number.
Begin by preparing Cameron's direct materials budget.
Cameron, Inc.
Direct Materials Budget
Cameron, Inc.
Direct Materials Budget
Budgeted kits to be produced
Direct materials (ounces) per kit
Direct materials needed for production
Plus: Desired direct materials in ending inventory More info
Less: Direct materials in beginning inventory
Budgeted purchases of direct materials
Direct materials cost per ounce
Budgeted cost of direct materials purchases
Direct materials are three ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 920 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Cameron desires a balance of 230 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $30 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.50 per kit, and fixed overhead is $145 per quarter.
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