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