Luther,Inc. manufactures model airplane kits. Direct materials are 3 ounces of plastic per kit and the plastic costs $2per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires0.25 hours of direct labor at an average cost of $ 45 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets:

Luther, Inc.
Direct Materials Budget
For the Year Ended December 31
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced	500	330	650	350	1,830
Direct materials (ounces) per kit	3	3	3	3	3
Direct materials needed for production	1,500	990	1,950	1,050	5,490
Plus: Desired direct materials in ending inventory	297	585	315	250	250
Total direct materials needed	1,797	1,575	2,265	1,300	5,740
Less: Direct materials in beginning inventory	950	297	585	315	950
Budgeted purchases of direct materials	847	1,278	1,680	985	4,790
Direct materials cost per ounce	$2	$2	$2	$2	$2
Budgeted cost of direct materials purchases	$1,694	$2,556	$3,360	$1,970	$9,580

Luther, Inc.
Direct Labor Budget
For the Year Ended December 31
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced		500	330	650	350	1,830
Direct labor hours per unit		0.25	0.25	0.25	0.25	0.25
Direct labor hours needed for production		125.00	82.50	162.50	87.50	457.50
Direct labor cost per hour		$45	$45	$45	$45	$45
Budgeted direct labor cost		$5,625	$3,713	$7,313	$3,938	$20,588

Luther, Inc.
Manufacturing Overhead Budget
For the Year Ended December 31
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced		500	330	650	350	1,830
VOH cost per kit		$0.70	$0.70	$0.70	$0.70	$0.70
Budgeted VOH		$350.00	$231.00	$455.00	$245.00	$1,281.00
Budgeted FOH		130.00	130.00	130.00	130.00	520.00
Budgeted manufacturing overhead costs		$480.00	$361.00	$585.00	$375.00	$1,801.00
Direct labor hours		125.00	82.50	162.50	87.50	457.50
Budgeted manufacturing overhead costs						$1,801.00
Predetermined overhead allocation rate						$3.94

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Luther projects sales of 350,200,600, and 700 kits for the next four quarters. Luther 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.)

Direct materials cost per kit	$6.00
Direct labor cost per kit	11.25
Manufacturing overhead cost per kit	0.99
Total projected manufacturing cost per kit	$18.24

Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter "0" for zero balances.)

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