Current Designs 24 (Part Level Submission) 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 2.600 kayaks 3,000 kayaks 2,400 kayaks 2.400 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales, Preliminary sales projections for 2021 are 1.100 units for the first quarter and 3.000 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 730 rotomolded kayaks. Production of each kayak requires 50 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, 2019, is 22,000 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 $1.20 per pound, and the finishing Kits cost $140 each. Production of a single lavak requires 5 hours of time by more experienced type I employees and 6 hours of finishing time by type II employees. The typer employees are paid $18 per hour and the type ll employees are paid $15 per hour Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter Manufacturing overhead is assigned at 140% of labor costs. Your answer is correct. Prepare the production budget for this product line by Quarter and in total for 2020 CURRENT DESIGNS Production Budget CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder For the Year Ending December 31, 2020 Quarter Q1 Q2 04 Total Units to be produced Pounds of Polyethylene Powder Per Unit Total Pounds of Powder Required Add . Desired Ending Inventory of Powder Total Costs for Direct Materials Less . Beginning Inventory of Powder Pounds of Polyethylene Powder to be purchased Cost Per Pound Total Costs for Direct Materials