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		2,000	kayaks
Quarter 2		2,400	kayaks
Quarter 3		1,800	kayaks
Quarter 4		1,800	kayaks

Current Designs policy is to have finished goods ending inventory in a quarter equal to 15% of the next quarters anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 2,400 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 300 rotomolded kayaks. Production of each kayak requires 58 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 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 $1.50 per pound, and the finishing kits cost $160 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 II employees. The type I employees are paid $15 per hour, and the type II employees are paid $12 per hour. Selling and administrative expenses for this line are expected to be $50 per unit sold plus $6,100 per quarter. Manufacturing overhead is assigned at 150% of labor costs.

(a)

Prepare the production budget for this product line by quarter and in total for 2022.

(b)

Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per kg to 2 decimal places, e.g, 12.25 and other answers to 0 decimal places, e.g. 125.)

(c)

Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per kg to 2 decimal places, e.g, 12.25 and other answers to 0 decimal places, e.g. 125.)

(d)

Prepare the manufacturing overhead budget for this product line by quarter and in total for 2022.

(e)

Prepare the selling and administrative expenses budget for this product line by quarter and in total for 2022.

CURRENT DESIGNS Production Budget choose the accounting period December 31, 2022For the Month Ending December 31, 2022For the Year Ending December 31, 2022
		Q1		Q2		Q3		Q4		Total
select an opening production budget item Expected Unit SalesDesired Ending Finished Goods UnitTotal Required UnitsTotal Materials RequiredDesired Ending Direct MaterialsRequired Production UnitsDirect Materials PurchasesBeginning Direct MaterialsBeginning Finished Goods UnitDirect Materials Per Unit		enter a number of units		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Desired Ending Direct MaterialsTotal Required UnitsDirect Materials Per UnitExpected Unit SalesDirect Materials PurchasesRequired Production UnitsBeginning Finished Goods UnitDesired Ending Finished Goods UnitTotal Materials RequiredBeginning Direct Materials		enter a number of units		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a summarizng line for the first part Direct Materials PurchasesTotal Required UnitsExpected Unit SalesDesired Ending Direct MaterialsBeginning Direct MaterialsTotal Materials RequiredDesired Ending Finished Goods UnitDirect Materials Per UnitRequired Production UnitsBeginning Finished Goods Unit		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select a production budget item Desired Ending Finished Goods UnitExpected Unit SalesBeginning Finished Goods UnitTotal Required UnitsTotal Materials RequiredDirect Materials Per UnitDesired Ending Direct MaterialsBeginning Direct MaterialsRequired Production UnitsDirect Materials Purchases		enter a number of units		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a closing production budget item Desired Ending Finished Goods UnitBeginning Finished Goods UnitTotal Required UnitsRequired Production UnitsBeginning Direct MaterialsDirect Materials Per UnitDesired Ending Direct MaterialsTotal Materials RequiredExpected Unit SalesDirect Materials Purchases		enter a total number of units		enter a total number of units