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Diane Buswell is preparing the 2022 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with member's of the ales department and executive team

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Diane Buswell is preparing the 2022 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with member's of the ales department and executive team have resulted in the following unit sales projections for 2022 Current Designs' pollicy is to have finished goods ending irwentory 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 finkhing kit (rope, seat, hardware, etc). Company policy is that the ending imventory of polyethylene powder should be 20m 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 asvembled as they are needed. As a result. Current Designs does not malutain a slgnificant imventery of the finishing kits. The polye tiwiene powder used in these kayaks cots $1.40 per pound, and the finsthins kits cost $180 each Production of a single. kayak requires 4 hours of time by moce experienced, type temployees and 5 hours of finishing time by type ll employees the type I employees are paid $17 per hour; and the type II emplowees are paid $14 per hour. Selling and administrative expenses for this line are expected to be $43 per unit sold ples 50.700 per quarter Manufacturing owertiead is assigned at 160N of labor costs. Prepare the production budget for this product line ty quarter and in total for 2022 Prepare the production budget for this product tine by quarter and in total for 2022

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