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Diane Buswell is preparing the 2 0 2 2 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department

Diane Buswell is preparing the 2022 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 2022.
Quarter 1,2,500 kayaks
Quarter 2,3,200 kayaks
Quarter 3,2,150 kayaks
Quarter 4,2,150 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 2023 are 1,100 units for the first quarter and 3,200 units for the second quarter. Ending inventory of
finished goods at December 31,2021, will be 500 rotomolded kayaks.
Production of each kayak requires 40 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, is 20,200 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 $1.40 per pound, and the finishing kits cost $140 each. Production of a single
kayak requires 5 hours of time by more experienced, type I employees and 6 hours of finishing time by type Il employees. The type I
employees are paid $17 per hour, and the type Il employees are paid $14 per hour.
Selling and administrative expenses for this line are expected to be $42 per unit sold plus $6,200 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 2022.
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