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Current Prem Progress Diane Buswell is preparing the 2020 budget for one of Current Designs'rotomolded kayaks. Extensive meetings with members of the sales department and

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Current Prem 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 2,600 kayaks 3.300 kayaks 2.250 kayaks 2.250 kayaks Current Designs 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 2021 are 1.100 units for the first quarter and 3,300 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 520 ratomolded kayaks. Production of each kayak requires 40 pounds of polyethylene powdd 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 19.600 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 $2.30 per pound, and the finishing kits cost $180 each. Production of a single kayak requires Shouts of time by more experienced type employees and 6 hours of finishing time by type Il employees. The type ! employees are paid $18 per hour and the type ll employees are paid 515 per hour Seting and administrative expenses for this line are spected to be 541 per unit sold plus 57400 per quarter Manufacturing overhead is assigned at 160% of tabor costs. al MacBook Air so RE ed fe $ % 3 4 & 5 6 00 9 1 O E R T Y U I o P D F H J L V B N ge command option For the Year Ending December 31, 2 Q1 92 1110 3300 Units to be produced Pound of Kolyetylene Power PerUnit Total Pound ended for Production Desiredning retary of Power Boy Powder Col Porn 5 5 5 The Centre Material Sarete Late Attempts: 1 of 2used Submit Anti MacBook Air 3 3 4 6 & 7 1 8 9 E R Y C 1 O P D F G H K * L V B N M ? command option

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