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 2,800 kayaks 3,300 kayaks 2.550 kayaks 2.550 kayaks 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 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 700 rotomolded kayaks. Production of each kayak requires 44 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy 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 20,400 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 $1.20 per pound, and the finishing kits cost $150 each. Production of a single kayak requires 4 hours of time by more experienced, type I employees and 5 hours of finishing time by type ll employees. The type employees are paid $17 per hour, and the type II employees are paid $14 per hour. Selling and administrative expenses for this line are expected to be $42 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 150% of labor costs. (a) Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget For the Year Ending December 31, 2020 Q2 Q3 Q4 Total 3300 2550 2550 638 638 275 3938 3188 2825 825 i 638 638 i 3113 2550 2187 Attempts: 3 of 3 used Using multiple attempts has impacted your score. (b) Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places, e.g. 1.25 and other answers to 0 decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethy Q1 Q2 vi > $ $ $ $ $ $ Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 50% score reduction after attempt 2