Harbor Springs Kayak Company 2022 Fiscal Year (January - December) Produces Base Model Kayak Units Sold Price Direct Materials per unit Direct Labor per unit Base 50,000 $ 100 2 1.5 Seasonal Sales Q1 15% Q2 40% Q3 25% Q4 20% 100% Information: - Q1 Sales for 2023 are expected to be the same as 2022 - Harbor Springs Kayak Company requires quarterly unit inventory to end with 15% of the next quarter's budgeted sales volume - Harbor Springs Kayak Company requires quarterly inventory of raw materials to end with 10% of the next quarter's production requirements - Cost per pound of direct materials = $20 - Labor is billed at $18/hour - Manufacturing Overhead is 50% of Direct Labor Unit Cost - Actual Sales matches budget - Selling and Admin Expenses are $250,000 - Income Tax Rate is 25%

Harbor Springs Kayak Company Sales Budget For the Year Ending December 31, 2022 Base Model Q1 Q2 Q3 Q4 Total Expected Sales in units Unit Selling Price Total Sales

Harbor Springs Kayak Company Production Budget For the Year Ending December 31, 2022 Base Model Q1 Q2 Q3 Q4 Total Expected sales in units Add: Desired finished goods units Total Required Units Less: Beginning finished goods units Required Production units

Harbor Springs Kayak Company Direct Materials Budget For the Year Ending December 31, 2022 Base Model Q1 Q2 Q3 Q4 Total Units to be produced Direct materials per unit Total pounds needed Add: Ending Direct Materials Total Material Required Less: Beginning Direct Materials Direct Material Purchases Cost per pound Total cost of direct material purchases

Harbor Springs Kayak Company Direct Labor Budget For the Year Ending December 31, 2022 Base Model Q1 Q2 Q3 Q4 Total Units to be produced Direct labor hours per unit Total required direct labor hours Direct Labor cost per hour Total direct labor costs

Harbor Springs Kayak Company Cost of Goods Sold Schedule For the Year Ending December 31, 2022 Per Unit Quantity Unit Cost Total Direct Materials Direct Labor Manufacturing Overhead Annual Unit Sales Total Cost of Goods Sold

Harbor Springs Kayak Company Income Statement For the Year Ending December 31, 2022 Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations Income Tax expense Net Income