Dog-errific 1,000 200 lbs. lbs. 2,560 460 Total quantity of direct material to be used lbs. lbs. Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Plastic 874 Metal 155 To be purchased this period Plastic Metal Direct materials to be used this period 3. 4. 5. 6. Direct material usage budget and direct material purchases budget Direct manufacturing labour cost budget Manufacturing overhead cost budgets for each of the three activities Budgeted unit cost of ending finished goods inventory and ending inventories budget Cost of goods sold budget Non-manufacturing costs budget Budgeted income statement (ignore income taxes) 7. 8. 9. Input prices Direct materials Plastic 4 per kilo Metal 3 per kilo 10 per direct manufacturing labour hour Direct manufacturing labour Input quantities per unit of output Cat-allac Dog-eriffic Direct materials Plastic 3 kilos 5 kilos Metal 0.5 kilos 1 kilo 3 kilos 5 hours Direct manufacturing labour-hours (DMLH) Machine-hours (MH) 10 MH 17 MH Inventory information, direct materials Plastic Metal Beginning inventory 230 kilos 50 kilos Inventory information, direct materials Plastic Metal 230 kilos 50 kilos Beginning inventory Target ending inventory Cost of beginning inventory 360 kilos 40 kilos 874 155 Sales and inventory information, finished goods Cat-allac Dog-eriffic Expected sales in units 500 215 Selling price 215 320 Target ending inventory in units 35 15 Beginning inventory in units 15 30 Beginning inventory in euros 1,500 5,580 Pet Luggage uses a FIFO cost flow assumption for finished good inventory. Cost driver information Cat-allac Dog-errific Number of units per batch 20 8 Setup time per batch 1.50 hours 2.00 hours Inspection time per batch 0.5 hours 0.6 hour Non-manufacturing fixed costs for March equal 32,000, of which half are salaries. Salaries are expected to increase 5% in April. The only variable non-manufacturing cost is sales commission, equal to 1% of sales revenue