Part 1

Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year

2021.

Product
	Knox	Ayer
Target ending inventory in units	1,800	800

Direct materials
	Metal	$2	per kilogram (same as in 2020)
	Fabric	$3	per metre (same as in 2020)
	Direct manufacturing labour	$15	per hour
	Machine setup overhead	$150	per hour

Content of Each Product Unit
	Product
	Knox		Ayer
Metal	1	kilograms	2	kilograms
Fabric	1	metre	2	metres
Direct manufacturing labour	0.05	hours	0.25	hours
Machine setup overhead	0.008	hours	0.015	hours

	Direct Materials
	Metal		Fabric
Target ending inventory	14,000	kilograms	2,000	metres

Calculate (1) the budgeted unit costs of ending finished-goods inventory on

December

31,

2021

(label it Schedule 6A) and (2) the ending inventories budget on

December

31,

2021

(label it Schedule 6B).

Question content area bottom

Part 1

(1).

Calculate

the budgeted unit costs of ending finished-goods inventory on

December

31,

2021

(label it Schedule 6A). (Round all dollar amounts to the nearest cent. Enter all input per unit of output amounts for direct manufacturing labour to two decimal places, and machine setup overhead to three decimal places.)

Schedule 6A: Unit Costs of Ending Finished-Goods Inventory
December 31, 2021
			Product
			Knox				Ayer
	Cost per unit of input		Input per unit of output		Total		Input per unit of output		Total
Metal				kg				kg
Fabric				m				m
Direct manufacturing labour				hrs.				hrs.
Machine setup overhead				hrs.				hrs.
Total

Part 2

(2). Calculate the ending inventories budget on

December

31,

2021

(label it Schedule 6B). (Enter cost per unit amounts to the nearest cent.)

Schedule 6B: Ending Inventories Budget December 31, 2021
	Quantity		Cost per unit			Total
Direct materials
Metal
Fabric
Finished goods
Knox
Ayer
Total ending inventory