KidzConnect Pte Ltd (hereinafter referred to as 'KidzConnect') produces a variety of baby-related products. One of its popular products is the comfortable baby bean bag bed. The two main materials used for the manufacture of the baby bean bag beds are velvet fabric and bean refill. The following information relates to the estimated sales and production of the baby bean bag beds for the month of April 2024: 

 

Selling price per unit	$180
Expected sales volume (baby bean bag beds)	25,300 units
Estimated inventory (baby bean bag beds), 1 Apr 2024	5,600 units
Estimated inventory (baby bean bag beds), 30 Apr 2024	Refer to note 1
Direct materials (velvet fabric) required to produce one unit	4 metres
Direct materials (bean refill) required to produce one unit	75 litres

 

Additional notes:

 

 

1. The desired ending inventory of finished goods (baby bean bag beds) is equal to 20% of next month's sales.  Budgeted sales volume in May 2024 is 31,600 units.

 

2. The estimated inventory of the velvet fabric is 18,900 metres on 1 Apr 2024 and the desired balance is 16,500 metres on 30 April 2024. Each metre of the velvet fabric costs $11.

 

3.The estimated inventory of the bean refill is 182,400 litres on 1 Apr 2024 and the desired balance is 192,000 litres on 30 Apr 2024. Each litre of the bean refill costs $0.50.

 

4. It takes a worker an average of 0.5 hour to measure and cut the fabric and 1.75 hours to sew and make a baby bean bag bed. The company pays its workers $10 per hour.

 

5.The cost of variable production overhead is $8.40 per baby bean bag bed.  Fixed production overhead costs are $234,000 per month, to be allocated equally to the number of baby bean bag beds produced each month.

 

KidzConnect Pte Ltd
Sales Budget
For the month ending 31 April 2024
Sales Unit	25,300
Unit Selling Price	$180
Total Sales	$4,554,000

 

KidzConnect Pte Ltd
Production Budget
For the month ending 31 April 2024
Expected units to be sold	25,300
Plus: Desired Ending inventory	20% X 31,600 = 6,320
Total needs	31,620
Less: Estimated Beginning inventory	(5600)
Total units to be produced	26,020

KidzConnect Pte Ltd
Direct Labour Cost Budget
For the month ending 31 April 2024
Units to be produced	26,020
Direct labour time per unit (hr)	2.25
Hours required for production	58,545
Hourly rate	$10.00
Total direct labour cost	$585,450

KidzConnect Pte Ltd Direct Materials Purchases Budget For the month ending 31 April 2024
	Velvet	Bean Refill	Total
Units to be produced	26,020	26,020
Direct materials required per unit Velvet (Meters & Litres)	4 meters	75 Litres
Total materials needed for production	104,080 Meters	1,951,500 Litres
Plus: Desired ending inventory	16,500 Meters	192,000 Litres
Total needs	120,580 Meters	2,143,500 Litres
Less: Estimated beginning inventory	(18,900) Meters	(182,400) Litres
Direct materials to be purchased	101,680 Meters	1,961,100 Litres
Unit price (per Meters & per Litres)	$11	$0.50
Total purchase cost	$1,118,480	$980,550	$2,099,030

Question: Determine the budgeted product cost per baby bean bag bed for the month of April 2024.