answer b the direct material budget sheet
SNOW Attempurustory Current Attempt in Progress Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 Quarter 2 Quarter 3 Quarter 4 1,300 Kayaks 2,000 kayaks 950 kayaks 950 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1.100 units for the first quarter and 2.000 units for the second quarter. Ending inventory of finished goods at December 31, 2019 will be 325 rotomolded kayaks Production of each kayak requires 52 pounds of polyethylene powder and a finishing kit (rope,seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2019, is 20,800 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $160 each. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type ll employees. The type employees are paid $13 per hour, and the type of employees are paid $10 per hour. Selling and administrative expenses for this line are expected to be $48 per unit sold plus $7.100 per quarter Manufacturing overhead is assigned at 140% of labor costs Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget For the Year Ending December 31, 2020 Q2 2,000 Q1 Expected Unit Sales 1.300 Add : Desired Ending Finished Goods Unit 500 238 Total Required Units 1.800 2.238 Beginning Finished Goods Unit 325 500 Required Production Units 1,475 1.738 thl Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget he Year Ending December 31, 2020 Q2 Q3 Q4 Total 2,000 950 950 238 238 275 2.238 1.188 1.225 500 i 238 i 238 1.738 950 987 5.150 (b) CURRENT DESIGNS Direct Materials Budget-Polyethylen Q1 Q2 > > $ Beginning inventory of Powder Cost of Polyethylene Powder to be purchased Cost of Required Finishing Kits Cost Per Pound Desired Ending inventory of Powder Pounds of Polyethylene Powder Per Unit Pounds of Polyethylene Powder to be purchased Total Costs for Direct Materials Total Pounds Needed for Production Total Pounds of Powder Required Units to be produced Direct Labor Cost Per Hour Direct Labor Time Per Unit Total Direct Labor Cost Total Required Direct Labor Hours $ CURRENT DESIGNS ct Materials Budget-Polyethylene Powder December 31, 2020 For the Month Ending December 31, 2020 For the Year Ending December 31, 2020 Q3 24 Total $ VA e Textbook and Media
