Case: Baci is a well-known lollipops maker in Western Australia and produces lollipops in two size, i.e., regular and large. The company sells their products to convenience stores, fairs, schools for fundraisers and in bulk on the internet. 2018 summer is approaching and Baci is preparing its budget for the December. All Baci's lollipops are hand-made, mostly out of sugar, and attached to wooden sticks. Expected sales are based on past experience. Other information for December 2018 is as follows Input price Direct materials: Sugar Sticks Direct manufacturing labour8 per direcng labour hour (DMLH) s0.50 per kg so.30 cach quantities per unit of output RegularLarge Direct materials: Sugar Sticks Direct manufacturing labour hour (DMIH) 02 hour0.25 hour Set-up hours per batch 025 k 0.5 kg 0.08 hour0.09 hour Inventory data for direct materials inning inventory Target ending inventory Sugar Sticks 25 kg 350 240 kg480 ost of beginning inventory$64STOS Baci accounts for direct matcrials using a FIFO cost flow assumption Sales and inventory data for finished goods Regulir Large ,000800 Expected sales in units Selling pricie Target ending inventory in units300 a80 Beginning inventory in units Beginning inventory in dollas500 474 $3 SA 200 Baci ues a FirO cost flow assumption for finished goods inventory