Preston, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic...

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Preston​,			Inc. manufactures model airplane kits. Direct materials are			five			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			0.25			hours of direct labor at an average cost of			$40			per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following​ budgets:					1​(Click			the icon to view the​ budgets.)							Preston			projects sales of			200​,			500​,			700​,			and			600			kits for the next four quarters.			Preston			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.)																																														(1) Direct materials cost per kit																																																																																										(2) Direct labor cost per kit																																																																																										(3) Manufacturing overhead cost per kit																																																																																	Total projected manufacturing cost per kit																																																																				Prepare a cost of goods sold budget for the year. ​(Complete all input fields. Enter​ "0" for zero​ balances.)																																														Preston, Inc.																																																			Cost of Goods Sold Budget																																																			For the Year Ended December 31																																																																																										First																																							Second																																							Third																																							Fourth																																																																																																																																	Quarter																																							Quarter																																							Quarter																																							Quarter																																							Total																																																			(4)																																																																																																																																																																																										Kits produced and sold																																																																																																																																																																																																																																					Total budgeted cost of goods sold																																																																																																																																																																																																																															1: Reference																																																							Preston, Inc.																																																										Direct Materials Budget																																																										For the Year Ended December 31																																																																																																						First																																												Second																																												Third																																												Fourth																																																																																																																																																		Quarter																																												Quarter																																												Quarter																																												Quarter																																												Total																																																Budgeted kits to be produced																									300																									530																									150																									650																									1,630																																							Direct materials (ounces) per kit																									5																									5																									5																									5																									5																																							Direct materials needed for production																									1,500																									2,650																									750																									3,250																									8,150																																							Plus: Desired direct materials in ending inventory																									795																									225																									975																									220																									220																																							Total direct materials needed																									2,295																									2,875																									1,725																									3,470																									8,370																																							Less: Direct materials in beginning inventory																									870																									795																									225																									975																									870																																							Budgeted purchases of direct materials																									1,425																									2,080																									1,500																									2,495																									7,500																																							Direct materials cost per ounce																									$1																									$1																									$1																									$1																									$1																																							Budgeted cost of direct materials purchases																									$1,425																									$2,080																									$1,500																									$2,495																									$7,500																																																																																					Preston, Inc.																																																										Direct Labor Budget																																																										For the Year Ended December 31																																																																																																						First																																												Second																																												Third																																												Fourth																																																																																																																																																		Quarter																																												Quarter																																												Quarter																																												Quarter																																												Total																																																Budgeted kits to be produced																									300																									530																									150																									650																									1,630																																							Direct labor hours per unit																									0.25																									0.25																									0.25																									0.25																									0.25																																							Direct labor hours needed for production																									75.00																									132.50																									37.50																									162.50																									407.50																																							Direct labor cost per hour																									$40																									$40																									$40																									$40																									$40																																							Budgeted direct labor cost																									$3,000																									$5,300																									$1,500																									$6,500																									$16,300																																																																																					Preston, Inc.																																																										Manufacturing Overhead Budget																																																										For the Year Ended December 31																																																																																																						First																																												Second																																												Third																																												Fourth																																																																																																																																																		Quarter																																												Quarter																																												Quarter																																												Quarter																																												Total																																																Budgeted kits to be produced																									300																									530																									150																									650																									1,630																																							VOH cost per kit																									$0.90																									$0.90																									$0.90																									$0.90																									$0.90																																							Budgeted VOH																									$270.00																									$477.00																									$135.00																									$585.00																									$1,467.00																																							Budgeted FOH																									175.00																									175.00																									175.00																									175.00																									700.00																																							Budgeted manufacturing overhead costs																									$445.00																									$652.00																									$310.00																									$760.00																									$2,167.00																																																																																																																																																																																																																																				Direct labor hours																									75.00																									132.50																									37.50																									162.50																									407.50																																							Budgeted manufacturing overhead costs																																																																																																																													$2,167.00																																							Predetermined overhead allocation rate																																																																																																																													$5.32																																										(1)																																Direct labor cost per kit																	Direct materials cost per kit																	Manufacturing overhead cost per kit																									Selling price per kit																(2)																																Direct labor cost per kit																	Direct materials cost per kit																	Manufacturing overhead cost per kit																									Selling price per kit																(3)																																Direct labor cost per kit																	Direct materials cost per kit																	Manufacturing overhead cost per kit																									Selling price per kit																(4)																																Beginning inventory																	Ending inventory

Preston, Inc.
Cost of Goods Sold Budget
For the Year Ended December 31
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
(4)
Kits produced and sold
Total budgeted cost of goods sold

Preston, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not...

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(1) Direct materials cost per kit
(2) Direct labor cost per kit
(3) Manufacturing overhead cost per kit
Total projected manufacturing cost per kit

Preston, Inc.
Direct Materials Budget
For the Year Ended December 31
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced	300	530	150	650	1,630
Direct materials (ounces) per kit	5	5	5	5	5
Direct materials needed for production	1,500	2,650	750	3,250	8,150
Plus: Desired direct materials in ending inventory	795	225	975	220	220
Total direct materials needed	2,295	2,875	1,725	3,470	8,370
Less: Direct materials in beginning inventory	870	795	225	975	870
Budgeted purchases of direct materials	1,425	2,080	1,500	2,495	7,500
Direct materials cost per ounce	$1	$1	$1	$1	$1
Budgeted cost of direct materials purchases	$1,425	$2,080	$1,500	$2,495	$7,500

Preston, Inc.
Direct Labor Budget
For the Year Ended December 31
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced	300	530	150	650	1,630
Direct labor hours per unit	0.25	0.25	0.25	0.25	0.25
Direct labor hours needed for production	75.00	132.50	37.50	162.50	407.50
Direct labor cost per hour	$40	$40	$40	$40	$40
Budgeted direct labor cost	$3,000	$5,300	$1,500	$6,500	$16,300

Preston, Inc.
Manufacturing Overhead Budget
For the Year Ended December 31
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced	300	530	150	650	1,630
VOH cost per kit	$0.90	$0.90	$0.90	$0.90	$0.90
Budgeted VOH	$270.00	$477.00	$135.00	$585.00	$1,467.00
Budgeted FOH	175.00	175.00	175.00	175.00	700.00
Budgeted manufacturing overhead costs	$445.00	$652.00	$310.00	$760.00	$2,167.00

Direct labor hours	75.00	132.50	37.50	162.50	407.50
Budgeted manufacturing overhead costs					$2,167.00
Predetermined overhead allocation rate					$5.32

Preston​, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic per kit and the plastic costs ​$1 per ounce. Indirect materials are considered insignificant and are not...

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Preston, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not...