Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I got the question below answered already but I asked if I could see how all the calculations were done and it's been a few
I got the question below answered already but I asked if I could see how all the calculations were done and it's been a few days with no response, please help. Thanks
Kayak World, Inc.
Budgetary Planning
INTRODUCTION
The Company Controller is preparing the budget for one of Kayak Worlds
new models of kayaks. Extensive meetings with members of the sales department
and executive team have resulted in the following unit sales projections for
Kayaks
Quarter
Quarter
Quarter
Quarter
Kayak Worlds policy is to have finished goods ending inventory in a quarter equal to of the next quarters anticipated sales. Preliminary sales projections for are units for the first quarter and units for the second quarter. Ending inventory of finished goods at December will be rotomolded kayaks.
Production of each kayak requires pounds of polyethylene powder and a finishing kit rope seat, hardware, etc. Company policy is that the ending inventory of polyethylene powder should be of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December is 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 $ per pound, and the finishing kits cost $ each. Production of a single kayak requires hours of time by more experienced, type I employees and hours of finishing time by type II employees. The type I employees are paid $ per hour, and the type II employees are paid $ per hour.
Selling and administrative expenses for this line are expected to be $ per unit sold plus $ per quarter. Manufacturing overhead is assigned at of labor costs.
REQUIREMENTS
Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and administrative budget for this product line by quarter and in total for
Follow this format:
a Offer a concise summary of the issue.
b Include graphs if appropriate.
c Perform calculations in Excel.
d Provide a summary and a clear recommendation to address the issue.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started