You must show your computations to receive credit.

Kason, Inc. expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2021:

	Beginning Inventory	Ending Inventory
Direct materials	24,000 units	24,000 units
Work-in-process inventory	0 units	0 units
Finished goods inventory	2,000 units	2,500 units

Required. Show your computations and label your answers.

1. On the 2021 budgeted income statement, what amount will be reported for sales?
2. How many pool cues need to be produced in 2021?
3. On the 2021 budgeted income statement, what amount will be reported for cost of goods sold?
4. What are the 2021 budgeted costs for: Direct materials, Direct labor, Manufacturing overhead, and total costs?