Cameron, Inc. manufactures model airplane kits. Direct materials are 3 ounces of plastic per kit and...

       

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Cameron, Inc. manufactures model airplane kits. Direct materials are 3 ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.75 hours of direct labor at an average cost of $22 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: F(Click the icon to view the budgets.) Cameron projects sales of 300, 400, 500, and 600 kits for the next four quarters. Cameron 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.. Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Cameron, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Plus: Desired direct materials in ending inventory Total direct materials needed 350 3 1,050 186 1.236 Second Quarter 620 3 1,860 45 1.905 Third Quarter 150 3 450 90 540 Fourth Quarter 300 3 900 280 1.180 Total 1,420 3 4,260 280 4.540 Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases $ 940 296 $ 296 $ 186 1,719 1 $ 1,719 $ 45 495 1 $ 495 $ 90 1,090 1 $ 1,090 $ 940 3,600 3,600 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Quarter Quarter 69 69 350 0.75 262.50 22 $ 5,775 $ 620 0.75 465.00 22 $ 10,230 $ Third Quarter 150 0.75 112.50 22 $ 2,475 $ Fourth Quarter 300 0.75 225.00 22 $ 4,950 $ Total 1,420 0.75 1,065.00 22 23,430 Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Quarter Quarter $ $ 69 69 350 0.60 $ 210.00 $ 160.00 370.00 $ 620 0.60 $ 372.00 $ 160.00 532.00 $ Third Quarter 150 0.60 $ 90.00 $ 160.00 250.00 $ Fourth Quarter 300 0.60 $ 180.00 $ 160.00 340.00 $ Total 1,420 0.60 852.00 640.00 1,492.00 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 262.50 465.00 112.50 225.00 $ 1,065.00 1,492.00 1.40 Kits produced and sold Total budgeted cost of goods sold Cost of Goods Sold Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Cameron, Inc. manufactures model airplane kits. Direct materials are 3 ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.75 hours of direct labor at an average cost of $22 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: F(Click the icon to view the budgets.) Cameron projects sales of 300, 400, 500, and 600 kits for the next four quarters. Cameron 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.. Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Cameron, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Plus: Desired direct materials in ending inventory Total direct materials needed 350 3 1,050 186 1.236 Second Quarter 620 3 1,860 45 1.905 Third Quarter 150 3 450 90 540 Fourth Quarter 300 3 900 280 1.180 Total 1,420 3 4,260 280 4.540 Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases $ 940 296 $ 296 $ 186 1,719 1 $ 1,719 $ 45 495 1 $ 495 $ 90 1,090 1 $ 1,090 $ 940 3,600 3,600 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Quarter Quarter 69 69 350 0.75 262.50 22 $ 5,775 $ 620 0.75 465.00 22 $ 10,230 $ Third Quarter 150 0.75 112.50 22 $ 2,475 $ Fourth Quarter 300 0.75 225.00 22 $ 4,950 $ Total 1,420 0.75 1,065.00 22 23,430 Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Quarter Quarter $ $ 69 69 350 0.60 $ 210.00 $ 160.00 370.00 $ 620 0.60 $ 372.00 $ 160.00 532.00 $ Third Quarter 150 0.60 $ 90.00 $ 160.00 250.00 $ Fourth Quarter 300 0.60 $ 180.00 $ 160.00 340.00 $ Total 1,420 0.60 852.00 640.00 1,492.00 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 262.50 465.00 112.50 225.00 $ 1,065.00 1,492.00 1.40 Kits produced and sold Total budgeted cost of goods sold Cost of Goods Sold Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total

Answer rating: 100% (QA)

Solution 1 2 All numbers for cost per kit is given in the provided budgets Cost per kit ... View the full answer