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Kelvin, Inc: Direct Materials Budget For the Year Ended December 31 begin{tabular}{|c|c|c|c|c|c|c|c|c|} hline & & & & & & begin{tabular}{l} Third Quarter end{tabular} &

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Kelvin, Inc: Direct Materials Budget For the Year Ended December 31 \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & & & & & & \begin{tabular}{l} Third \\ Quarter \end{tabular} & \begin{tabular}{l} Fourth \\ Quarter \end{tabular} & Total \\ \hline Budgeted Kits to be produced & & 500 & & 620 & & 200 & 350 & 1,670 \\ \hline Ditect materials (ounces) per kit & & 6. & & 6 & & 6) & 6 & 6 \\ \hline Direct materials needed for production & & 3,000 & & 3.720 & & 1,200 & 2,100 & 10,020 \\ \hline Plus: Desired direct materials in ending inventory & & & & 360 & & 630 & 300 & 300 \\ \hline Total direct materials needed & & 4:116 & & 4080 & & 1,830 & 2.400 & 10,320 \\ \hline Less: Direct materials in beginning inventory & & 970 & & 1,16 & & 360 & 630 & 910 \\ \hline Budgeted purchases of direct materials. & & 3.206 & & 2964 & & 1.470 & 1.770 & 9.410 \\ \hline Direct materials costper ounce & & 3 & \$: & 2 & $ & 2 & s. & 5 \\ \hline Budgeted cost of direct inaterials purchase & & 6.412 & 5: & 5.928 & $ & 2940 & 3,540 & 18.820 \\ \hline \end{tabular} Kelvin, Inc. manufactures model airplane kits. Direct materials are six 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 0.75 hours of direct labor at an average cost of $25 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 300,400,450, and 800 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 )

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