Diane Buswell is preparing the 2020 budget for one of Current Designs rotomolded kayaks. Extensive meetings with members the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 Quarter 2 Quarter 3 Quarter 4 2,900 kayaks 3,300 kayaks 2,700 kayaks 2,700 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sale Preliminary sales projections for 2021 are 1,100 units for the first quarter and 3,300 units for the second quarter. Ending invento of finished goods at December 31, 2019, will be 870 rotomolded kayaks. Production of each kayak requires 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company po is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2019, is 21,800 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 $1.40 per pound, and the finishing kits cost $180 each. Production of a singl kayak requires 4 hours of time by more experienced, type I employees and 5 hours of finishing time by type II employees. The typ employees are paid $18 per hour, and the type ll employees are paid $15 per hour. Selling and administrative expenses for this line are expected to be $43 per unit sold plus $8,300 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Direct Materials Budget-Polyethyl For the Year Ending December 31, 2 Q1 Q2 Units to be produced 3020 3120 Pounds of Polyethylene Powder Per Unit V 56 5 Total Pounds Needed for Production 169120 174720 Add : Desired Ending Inventory of Powder 43680 37800 Total Pounds of Powder Required Less Beginning Inventory of Powder Cost of Polvethvlene Powder to be purchased Cost Per Pound $ $ Total Costs for Direct Materials $ $ Pounds of Polvethylene Powder Per Unit Total Pounds of Powder Required $ $ 24 ty ect Materials Budget-Polyethylene Powder For the Year Ending December 31, 2020 V Quarter Q2 Q3 Q4 Total 3120 2700 2220 56 56 56 174720 151200 124320 37800 31080 98560 $ $ $ $ $ $ $ $ $ $