Daniel Inc. expects to sell 6,000 ceramic vases for $20 each in 2021. Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase. Each vase requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half completed as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started. Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2021:

Beginning inventory Ending inventory

Direct Materials 1000kg 800kg

WIP Inventory 100 units 300 units

Finished goods inventory 400 units 500 units

1. On the 2021 budgeted income statement, what amount will be reported for gross margin?

2. How many ceramic vases need to be produced in 2021?

3. How many kilograms of material will need to be purchased for 2021 production and inventory requirements?

4. What are the 2021 budgeted costs for direct manufacturing labour?