Wilber, Inc. manufactures model airplane kits. Direct materials are 4 ounces of plastic per kit and the plastic costs $4 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 $45 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.) Wilber projects sales of 200, 100, 600, and 100 kits for the next four quarters. Wilber 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.) Reference Total projected manufacturing cost per kit Wilber, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Prepare a cost of goods sold budget for the year. (Complete all answer boxes. Enter "O" for zero balances.) Fourth Quarter Total 250 680 150 550 Wilber, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Second Third 1,630 4 4 4 4 4 Fourth 1,000 2,720 600 2,200 6,520 Quarter Quarter Quarter Quarter Total 816 180 660 270 270 Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Desired direct materials in Plus: ending inventory Total direct materials needed Direct materials in beginning Less: inventory Budgeted purchases of direct materials 1,816 2,900 1,260 2,470 6,790 Kits produced and sold 930 816 180 660 930 Total budgeted cost of goods sold 886 5,860 2,084 4 $ 1,080 4 $ 1,810 4 $ $ 4 $ 4 Direct materials cost per ounce Budgeted cost of direct materials purchases $ 3,544/ $ 8,336 $ 4,320 $ 7,240 $ 23,440 Wilber, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 250 680 150 550 1,630 0.50 0.50 0.50 0.50 0.50 Direct labor hours per unit Direct labor hours needed for production 75.00 125.00 45||$ 340.00 45||$ 275.00 45||$ 815.00 45 $ 45||$ Direct labor cost per hour $ 5,625 $ 15,300||$ Budgeted direct labor cost 3,375||$ 36,675 12,375 $ Wilber, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 680 150 550 250 0.60||$ 1,630 0.60 $ 0.60|| $ VOH cost per kit 0.60||$ 0.60||$ Budgeted VOH $ 978.00 150.00||$ 135.00 408.00 || $ 135.00 90.00||$ 135.00 330.00 $ 135.00 540.00 Budgeted FOH Budgeted manufacturing overhead costs $ 285.00||$ 543.00||$ 225.00||$ 465.00||$ 1,518.00 125.00 340.00 75.00 275.00 815.00 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation $ 1,518.00 $ 1.86 rate
