Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022. Quarter 1 2,300 kayaks Quarter 2 3,100 kayaks Quarter 3 1.900 kayaks 1.900 kayaks Quarter 4 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 2023 are 1.100 units for the first quarter and 3,100 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 575 rotomolded kayaks. Production of each kayak requires 42 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, 2021. s 19,800 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 $150 per pound, and the finishing kits cost $180 each. Production of a single kayak requires 4 hours of time by more experienced, type l employees and 5 hours of finishing time by type Il employees. The type i employees are paid $12 per hour, and the type Il employees are paid 59 per hour Selling and adminic hot 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 $180 each. Production of a single kayak requires 4 hours of time by more experienced, type l employees and 5 hours of finishing time by type II employees. The type ! employees are paid $12 per hour, and the type ll employees are paid 59 per hour. Selling and administrative expenses for this line are expected to be $50 per unit sold plus $7.900 per quarter. Manufacturing overhead is assigned at 140% of labor costs. 2022 Q2 Q3 04 Total 3.100 1.900 1200 475 475 275 2575 2375 2175 7751 475 475 2,800 1.900 1.700 e Textbook and Media Assistance Used Solution Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per pound to 2 decimal places, eg. 1.25 and other answers to decimal places, eg. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethy For the Year Ending December 31. Q1 Q2 Units to be produced 2.500 2,80 Pounds of Polyethylene Powder Per Unit Total Pounds Needed for Production 105.000 11760 1! Total Pounds Needed for Production 105,000 117,60 Add Desired Ending Inventory of Powder 29.400 19,95 Total Pounds of Powder Required 134,400 137,554 Less Beginning Inventory of Powder 19.800 i 29.404 Pounds of Polyethylene Powder to be purchased 144,600 108.15 Cost Per Pound $ 1.50 $ 15 Cost of Polyethylene Powder to be purchased 216.900 $ 162.22 Cost of Required Finishing Kits 450,000 504.00 Total Costs for Direct Materials 666.900 $ 666.22 e Textbook and Media Assistance Used Question 13 of 13