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Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $3 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets View the budgets. Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters. Cameron Company 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, $XXX.) Total projected manufacturing cost per kit Budgets Cameron Company Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 620 7 7 650 7 450 150 7 2,320 7 Direct materials (ounces) per kit Direct materials needed for production 4,200 4,340 4,550 Plus: Desired direct materials in ending inventory 1,302 1,365 945 3,150 210 16,240 210 Total direct materials needed 5,502 5,705 5,495 3,360 16,450 880 Less: Direct materials in beginning inventory 1,302 1,365 945 880 Budgeted purchases of direct materials 4,622 4,403 4,130 2,415 15,570 Direct materials cost per ounce 3 S 13,866 $ 13,209 $ 3 $ 3 $ 3 $ 3 12,390 $ 7,245 $ 46,710 Budgeted cost of direct materials purchases Cameron Company Direct Labor Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Budgeted kits to be produced Direct labor hours per unit 600 620 650 450 2,320 0.75 0.75 0.75 0.75 0.75

Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $3 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets View the budgets. Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters. Cameron Company 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, $XXX.) Total projected manufacturing cost per kit Budgets Cameron Company Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 620 7 7 650 7 450 150 7 2,320 7 Direct materials (ounces) per kit Direct materials needed for production 4,200 4,340 4,550 Plus: Desired direct materials in ending inventory 1,302 1,365 945 3,150 210 16,240 210 Total direct materials needed 5,502 5,705 5,495 3,360 16,450 880 Less: Direct materials in beginning inventory 1,302 1,365 945 880 Budgeted purchases of direct materials 4,622 4,403 4,130 2,415 15,570 Direct materials cost per ounce 3 S 13,866 $ 13,209 $ 3 $ 3 $ 3 $ 3 12,390 $ 7,245 $ 46,710 Budgeted cost of direct materials purchases Cameron Company Direct Labor Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Budgeted kits to be produced Direct labor hours per unit 600 620 650 450 2,320 0.75 0.75 0.75 0.75 0.75

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...
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Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $3 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets View the budgets. Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters. Cameron Company 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, $XXX.) Total projected manufacturing cost per kit Budgets Cameron Company Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 620 7 7 650 7 450 150 7 2,320 7 Direct materials (ounces) per kit Direct materials needed for production 4,200 4,340 4,550 Plus: Desired direct materials in ending inventory 1,302 1,365 945 3,150 210 16,240 210 Total direct materials needed 5,502 5,705 5,495 3,360 16,450 880 Less: Direct materials in beginning inventory 1,302 1,365 945 880 Budgeted purchases of direct materials 4,622 4,403 4,130 2,415 15,570 Direct materials cost per ounce 3 S 13,866 $ 13,209 $ 3 $ 3 $ 3 $ 3 12,390 $ 7,245 $ 46,710 Budgeted cost of direct materials purchases Cameron Company Direct Labor Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Budgeted kits to be produced Direct labor hours per unit 600 620 650 450 2,320 0.75 0.75 0.75 0.75 0.75
Transcribed Image Text:Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $3 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets View the budgets. Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters. Cameron Company 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, $XXX.) Total projected manufacturing cost per kit Budgets Cameron Company Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 620 7 7 650 7 450 150 7 2,320 7 Direct materials (ounces) per kit Direct materials needed for production 4,200 4,340 4,550 Plus: Desired direct materials in ending inventory 1,302 1,365 945 3,150 210 16,240 210 Total direct materials needed 5,502 5,705 5,495 3,360 16,450 880 Less: Direct materials in beginning inventory 1,302 1,365 945 880 Budgeted purchases of direct materials 4,622 4,403 4,130 2,415 15,570 Direct materials cost per ounce 3 S 13,866 $ 13,209 $ 3 $ 3 $ 3 $ 3 12,390 $ 7,245 $ 46,710 Budgeted cost of direct materials purchases Cameron Company Direct Labor Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Budgeted kits to be produced Direct labor hours per unit 600 620 650 450 2,320 0.75 0.75 0.75 0.75 0.75
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