Preston, Inc. manufactures model airplane kits. Direct materials are six ounces of plastic per kit and the plastic costs $5 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 $55 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets:

Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 550 330 250 800 1,930 6 6. 6 6 6 Direct materials (ounces) per kit Direct materials needed for production 1,980 3,300 198 1,500 480 4,800 240 11,580 240 150 Plus: Desired direct materials in ending inventory Total direct materials needed 5,040 3,498 940 2,130 198 1,980 150 11,820 940 480 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 4,560 10,880 2,558 5$ 1,932 5 $ 1,830 5$ $ 5$ 5 Direct materials cost per ounce $ 12,790 | $ 9,660 $ Budgeted cost of direct materials purchases 9,150 $ 22,800 $ 54,400 Preston, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 550 330 800 1,930 250 0.50 0.50 0.50 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production 0.50 0.50 165.00 965.00 275.00 55$ 125.00 55$ 400.00 55 $ $ 55$ 55 Direct labor cost per hour $ 15,125$ 9,075$ 6,875$ 22,000 $ 53,075 Budgeted direct labor cost Preston, Inc. Preston projects sales of 300, 100, 700, and 550 kits for the next four quarters. Preston 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, $X.XX.) Total projected manufacturing cost per kit Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 550 330 250 800 1,930 6 6. 6 6 6 Direct materials (ounces) per kit Direct materials needed for production 1,980 3,300 198 1,500 480 4,800 240 11,580 240 150 Plus: Desired direct materials in ending inventory Total direct materials needed 5,040 3,498 940 2,130 198 1,980 150 11,820 940 480 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 4,560 10,880 2,558 5$ 1,932 5 $ 1,830 5$ $ 5$ 5 Direct materials cost per ounce $ 12,790 | $ 9,660 $ Budgeted cost of direct materials purchases 9,150 $ 22,800 $ 54,400 Preston, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 550 330 800 1,930 250 0.50 0.50 0.50 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production 0.50 0.50 165.00 965.00 275.00 55$ 125.00 55$ 400.00 55 $ $ 55$ 55 Direct labor cost per hour $ 15,125$ 9,075$ 6,875$ 22,000 $ 53,075 Budgeted direct labor cost Preston, Inc. Preston projects sales of 300, 100, 700, and 550 kits for the next four quarters. Preston 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