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Current Designs CD 9 Diane Buswell is preparing the 2 0 2 2 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members
Current Designs
CD Diane Buswell is preparing the 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
Quarter kayaks
Quarter kayaks
Quarter kayaks
Quarter kayaks
Current Designs' policy is to have finished goods ending inventory in a quarter equal to of the next
quarter's anticipated sales. Preliminary sales projections for are units for the first quarter and
units for the second quarter. Ending inventory of finished goods at December will be
rotomolded kayaks.
Production of each kayak requires pounds of polyethylene powder and a finishing kil rope
seat, hardware, etc. Company policy is that the ending inventory of polyethylene powder should be
of the amount needed for production in the next quarter. Assume that the ending inventory of
polyethylene powder on December is 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 $ per pound, and the finishing kits cost
$ each. Production of a single kayak requires hours of time by more experienced, type employees
and hours of finishing time by type II employees. The type I employees are paid $ per hour, and the
type II employees are paid $ per hour.
Selling and administrative expenses for this line are expected to be $ per unit sold plus $ per
quarter. Manufacturing overhead is assigned at of labor costs.
Instructions
Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead
budget, and selling and administrative budget for this product line by quarter and in total for
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