Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 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 kit 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 I employees and hours of finishing time by type Il employees. The type I
employees are paid $ per hour, and the type Il 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.
Prepare the production budget for this product line by quarter and in total for
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started