E22-25 (similar to) Question Help Kelvin, Inc. manufactures model airplane kits. Direct materials are 3 ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.50 hours of direct labor at an average cost of $20 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.) Kelvin projects sales of 200, 100, 300, and 500 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, $X.XX.) Total projected manufacturing cost per kit Choose from any list or enter any number in the input fields and then click Check Answer. ? i Reference Kelvin, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 300 620 650 450 2,020 3 3 3 3 3 Direct materials (ounces) per kit Direct materials needed for production 900 1,860 1,950 1,350 6,060 558 585 405 280 280 Plus: Desired direct materials in ending inventory Total direct materials needed 1,458 2,445 2,355 1,630 6,340 930 558 585 405 930 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 528 5,410 1,887 4||$ 1,770 4||$ 1,225 4||$ $ Direct materials cost per ounce 4||$ 4 2,112||$ 7,548 7,080||$ 4,900||$ 21,640 Budaeted cost of direct materials purchases Print Done Budgeted cost of direct materials purchases Kelvin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 300 620 650 450 2,020 0.50 0.50 Direct labor hours per unit 0.50 0.50 0.50 Direct labor hours needed for production 150.00 310.00 325.00 225.00 1,010.00 20 $ 20||$ 20||$ 20||$ 20||$ Direct labor cost per hour $ 3,000|| $ 6,200||$ 6,500||$ 4,500||$ 20,200 Budgeted direct labor cost Kelvin, Inc. Manufacturing Overhead Budget i Reference - Kelvin, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 300 620 650 450 2,020 $ 0.60||$ 0.60 || $ VOH cost per kit 0.60 || $ 0.60 0.60||$ Budgeted VOH 180.00 || $ 372.00||$ 390.00 || $ 270.00 || $ 1,212.00 520.00 130.00 130.00 130.00 130.00 Budgeted FOH $ 310.00 || $ 502.00||$ 520.00||$ 400.00||$ 1,732.00 Budgeted manufacturing overhead costs Direct labor hours 150.00 310.00 325.00 225.00 1,010.00 Budgeted manufacturing overhead costs 1,732.00 $ 1.71 Predetermined overhead allocation rate Prepare a cost of goods sold budget for the year. (Complete all answer boxes. Enter "O" for zero balances.) Kelvin, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Kits produced and sold Total budgeted cost of goods sold Choose from any list or enter any number in the input fields and then click Check