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 1,300 kayaks Quarter 2 2,000 kayaks Quarter 3 950 kayaks Quarter 4 950 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 2023 are 1,100 units for the first quarter and 2,000 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 325 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 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, 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 single kayak requires 4 hours of time by more experienced, type I employees and 5 hours of finishing time by type Il employees. The type I 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 $43 per unit sold plus $6,700 per quarter. Manufacturing overhead is assigned at 160% of labor costs. (a) Your Answer Correct Answer (Used) Prepare the production budget for this product line by quarter and in total for 2022. CURRENT DESIGNS Production Budget For the Year Ending December 31, Q1 Q2 Expected Unit Sales 1,300 2,000 Add V: Desired Ending Finished Goods Unit 500 238 Total Required Units 1,800 2,238 Less V: Beginning Finished Goods Unit 325 500 Required Production Units 1,475 1,738 (a) Your Answer Correct Answer (Used) Prepare the production budget for this product line by quarter and in total for 2022. RRENT DESIGNS bduction Budget ding December 31, 2022 22 Q3 Q4 Total 2,000 950 950 5,200 238 238 275 275 2,238 1,188 1,225 5,475 500 238 i 238 i 325 1,738 950 987 5,150 (b) Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per pound to 2 decimal places, e.g. 1.25 and other answers to 0 decimal places, eg. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Pd For the Year Ending December 31, 2022 Qua Q1 Q2 roduced 1475 1738 lyethylene Powder Per Unit 44 44 thylene Powder to be purchased 64900 76472 Desired Ending Inventory of Powder 15294 8360 of Powder Required 80194 84832 Beginning Inventory of Powder 21800 15294 DOOD $ JUNE (b) Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per pound to 2 decimal places, eg, 1.25 and other answers to 0 decimal places, eg. 125.) NT DESIGNS get-Polyethylene Powder December 31, 2022 V Quarter Q2 Q3 Q4 Total 1738 950 987 44 44 76472 41800 43428 8360 11660 84832 15294 $ $ $ DOOD! UU! $ $ $ W $ ta $