Homer Inc Direct Materials Budget For the Year Ended Decembe

Homer, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 450 150 1,950 Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases 550 800 6 2,700 270 2,970 810 2,160 900 1,440 2,340 270 2,070 4,800 300 5,100 1,440 3,660 3,300 810 11,700 300 4,110 900 12,000 900 3,210 11,100 3,210 $ 2,160 $ 2,070 $ 3,660 $ 11,100

Solution

Homer, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Beginning inventory 0 0 Kits produced and sold 400 100 500 650 1650 Total budgeted cost of goods sold 8704 2176 10880 14144 35904