All calculations should be done using formulas in excel.

Richard Fiesel is preparing the 2023 budget for ACE Kayaks. Extensive meetings with members of the sales department and executive management team have resulted in the following unit sales projections for 2023. ACE's policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2024 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending inventory of finished goods at December 31, 2022, will be 200 kayaks. Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31 , 2022 , is 19,500 pounds. The finishing kits can be assembled as they are needed. As a result, ACE does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $1.55 per pound, and the finishing kits cost $150 each. Production of a single kayak requires 3 hours of time by more experienced, type I employees and 4 hours of finishing time by type II employees. The type I employees are paid $30 per hour, and the type II employees are paid $15 per hour. Selling and administrative expenses for this line are expected to be $50 per unit sold plus $7,500 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Chapter 22: Using Excel to Make Decisions at Current Designs \begin{tabular}{llr} \hline Data & & \\ Budgeted unit sales & & \\ & Quarter 1, 2023 & 1,250 \\ & Quarter 2, 2023 & 1,500 \\ & Quarter 3, 2023 & 750 \\ & Quarter 4, 2023 & 700 \\ & Quarter 1, 2024 & 1,100 \\ & Quarter 2, 2024 & 1,500 \end{tabular} Desired finished goods ending inventory 20% of next month's sales Desired ending inventory of polyethylene powder 25% of next month's production Estimated inventories FinishedgoodsinventoryatDec.31,2022PolyethylenepowderatDec.31,202220019,500poundskayaks Production requirements PolyethylenepowderFinishingkitTypeIemployeeslabortimeTypeIIemployeeslabortimeManufacturingoverhead54134150%ofdirectlaborcostspoundskithourshours Cost of polyethylene powder Cost of finishing kits Labor rate of type I employees $1.55 per pound Labor rate of type II employees $$150.0030.00perkitperhour Selling and administrative expenses $15.00 per hour Selling and administrative expenses $50.00 per unit sold $7,500 per quarter Required Follow the step-by-step directions (in Word document) to prepare selected budgets for ACE Kayaks (see word document in assignment) CUSTOM DESIGNS Sales Budget For the Year Ending Decermber 31. 2023 Expected unit sales (see projections) Sales Price Per Kayak (set by you, the manager... set a price you think will help you cover all of your costs for the period) * In a separate note, please explain why you chose Total Sales Dollars for the Quarter (expected unit sales sales price per kayak) CUSTOM DESIGNS Production Budget CUSTOM DESIGNS Direct Materials Budget For the Year Ending December 31, 2023 CUSTOM DESIGNS Manufacturing Overhead Budget For the Year Ending December 31. 2023