KarenWhiteis preparing the 2022 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022.

Quarter 1

2,900

kayaks

Quarter 2

3,700

kayaks

Quarter 3

2,500

kayaks

Quarter 4

2,500

kayaks

Current Designs' policy is to have finished goods ending inventory in a quarter equal to25% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are1,100units for the first quarter and3,700units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be725rotomoulded kayaks.

Production of each kayak requires56kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc). Company policy is that the ending inventory of polyethylene powder should be20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is19,400kg. 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 $1.50per kilogram, and the finishing kits cost $140each. Production of a single kayak requires3hours of time by more experienced, type I employees and4hours of finishing time by type II employees. The type I employees are paid $15per hour, and the type II employees are paid $12per hour.

Selling and administrative expenses for this line are expected to be $49per unit sold plus $6,000per quarter. Manufacturing overhead is assigned at140% of labour costs.

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, 2022

Q1

Q2

Q3

Q4

TOTAL

select an opening production budget item

Beginning inventory

Total labour costs

Required ending inventory

Hours per unit

Sales in units

Total amount required

Units required for production

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 production budget item

Units required for production

Required ending inventory

Total labour costs

Sales in units

Beginning inventory

Total amount required

Hours 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 a summarizing line for the first part

Total amount required

Sales in units

Units required for production

Total labour costs

Beginning inventory

Hours per unit

Required ending inventory

enter a total number of units for the first part

enter a total number of units for the first part

enter a total number of units for the first part

enter a total number of units for the first part

enter a total number of units for the first part

select between addition and deduction

Add

Less

:

select a production budget item

Beginning inventory

Sales in units

Hours per unit

Units required for production

Total labour costs

Total amount required

Required ending inventory

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

Sales in units

Total labour costs

Units required for production

Total amount required

Hours per unit

Beginning inventory

Required ending inventory

enter a total number of units

enter a total number of units

enter a total number of units

enter a total number of units

enter a total number of units

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.)

CURRENT DESIGNS

Direct Materials Budget--Polyethylene Powder

For the Year Ending December 31, 2022

Quarter

Q1

Q2

Q3

Q4

TOTAL

select an opening direct materials budget item

Total cost of DM

Required ending inventory

DM purchases required (kg)

Cost per kg

Production in units

Cost of kits

Beginning inventory

Total cost for direct materials

DM needed for production

Total kg required

Kg of DM 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 an item

Production in units

DM needed for production

Kg of DM per unit

DM purchases required (kg)

Cost per kg

Cost of kits

Total cost of DM

Required ending inventory

Total cost for direct materials

Total kg required

Beginning inventory

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

select a summarizing line for the first part

DM needed for production

Kg of DM per unit

Total kg required

Cost per kg

Required ending inventory

Production in units

DM purchases required (kg)

Total cost of DM

Beginning inventory

Cost of kits

Total cost for direct materials

enter a total number of kilograms for the first part

enter a total number of kilograms for the first part

enter a total number of kilograms for the first part

enter a total number of kilograms for the first part

enter a total number of kilograms for the first part

select between addition and deduction

Less

Plus

:

select an item

Total cost of DM

Kg of DM per unit

DM needed for production

Total kg required

Total cost for direct materials

Production in units

DM purchases required (kg)

Cost per kg

Cost of kits

Required ending inventory

Beginning inventory

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

select a summarizing line for the second part

Total cost of DM

Cost per kg

DM purchases required (kg)

Total kg required

Beginning inventory

Total cost for direct materials

Production in units

DM needed for production

Kg of DM per unit

Required ending inventory

Cost of kits

enter a total number of kilograms for the second part

enter a total number of kilograms for the second part

enter a total number of kilograms for the second part

enter a total number of kilograms for the second part

enter a total number of kilograms for the second part

select between addition and deduction

Plus

Less

:

select an item

Total kg required

DM purchases required (kg)

Cost per kg

Production in units

Kg of DM per unit

Total cost for direct materials

Total cost of DM

Required ending inventory

DM needed for production

Beginning inventory

Cost of kits

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

enter a number of kilograms

select a summarizing line for the third part

Cost of kits

Cost per kg

Required ending inventory

DM needed for production

Kg of DM per unit

Total cost for direct materials

Beginning inventory

DM purchases required (kg)

Production in units

Total kg required

Total cost of DM

enter a total number of kilograms for the third part

enter a total number of kilograms for the third part

enter a total number of kilograms for the third part

enter a total number of kilograms for the third part

enter a total number of kilograms for the third part

select an item

Total kg required

Total cost for direct materials

Production in units

DM needed for production

Kg of DM per unit

Total cost of DM

Cost of kits

Required ending inventory

Beginning inventory

DM purchases required (kg)

Cost per kg

$

enter a dollar amount rounded to 2 decimal places

$

enter a dollar amount rounded to 2 decimal places

$

enter a dollar amount rounded to 2 decimal places

$

enter a dollar amount rounded to 2 decimal places

$

enter a dollar amount rounded to 2 decimal places

select a summarizing line for the fourth part

Production in units

Total kg required

DM purchases required (kg)

Beginning inventory

Kg of DM per unit

Total cost of DM

Cost of kits

Cost per kg

Required ending inventory

DM needed for production

Total cost for direct materials

$

enter a total dollar amount for the fourth part

$enter a total dollar amount for the fourth part

$enter a total dollar amount for the fourth part

$

enter a total dollar amount for the fourth part

$

enter a total dollar amount for the fourth part

select an item

DM purchases required (kg)

Kg of DM per unit

DM needed for production

Total cost for direct materials

Production in units

Total cost of DM

Cost per kg

Cost of kits

Required ending inventory

Total kg required

Beginning inventory

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing direct materials budget item

Total kg required

Required ending inventory

DM purchases required (kg)

Total cost of DM

Cost of kits

Beginning inventory

Total cost for direct materials

Production in units

Kg of DM per unit

Cost per kg

DM needed for production

$

enter a total amount

$

enter a total amount

$

enter a total amount

$

enter a total amount

$

enter a total amount

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

CURRENT DESIGNS

Direct Labour Budget

For the Year Ending Dec 31, 2022

More skilled labour

Q1

Q2

Q3

Q4

TOTAL

select an opening labour budget item

Hours per unit

Total cost of Type I employees

Units of production

Rate per hour

Total hours required

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 labour budget item

Units of production

Total cost of Type I employees

Rate per hour

Total hours required

Hours per unit

enter a number of hours

enter a number of hours

enter a number of hours

enter a number of hours

enter a number of hours

select a summarizing line for the first part

Total cost of Type I employees

Units of production

Hours per unit

Total hours required

Rate per hour

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

select a labour budget item

Total cost of Type I employees

Total hours required

Rate per hour

Units of production

Hours per unit

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select a closing labour budget item

Total cost of Type I employees

Units of production

Hours per unit

Rate per hour

Total hours required

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

Less skilled labour

Q1

Q2

Q3

Q4

TOTAL

select an opening labour budget item

Total cost of Type II employees

Total hours required

Units of production

Hours per unit

Rate per hour

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 labour budget item

Rate per hour

Hours per unit

Total hours required

Units of production

Total cost of Type II employees

enter a number of hours

enter a number of hours

enter a number of hours

enter a number of hours

enter a number of hours

select a summarizing line for the first part

Hours per unit

Rate per hour

Units of production

Total cost of Type II employees

Total hours required

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

enter a total number of hours for the first part

select a labour budget item

Hours per unit

Total cost of Type II employees

Total hours required

Rate per hour

Units of production

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select a closing labour budget item

Total cost of Type II employees

Hours per unit

Units of production

Total hours required

Rate per hour

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

Total labour costs$

enter a total dollar amount for this budget

$

enter a total dollar amount for this budget

$

enter a total dollar amount for this budget

$

enter a total dollar amount for this budget

$

enter a total dollar amount for this budget

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

CURRENT DESIGNS

Manufacturing Overhead Budget

For the Year Ending Dec 31, 2022

Q1

Q2

Q3

Q4

TOTAL

select an opening manufacturing overhead budget item

Manufacturing overhead

Rate per hour

Direct labour costs

Rate

Total cost of Type I employees

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select an item

Total cost of Type I employees

Manufacturing overhead

Rate per hour

Rate

Direct labour costs

enter percentages

%enter percentages

%enter percentages

%enter percentages

%enter percentages

%select a closing manufacturing overhead budget item

Rate

Manufacturing overhead

Total cost of Type I employees

Rate per hour

Direct labour costs

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

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

CURRENT DESIGNS

Selling and Administrative Budget

For the Year Ending Dec 31, 2022

Q1

Q2

Q3

Q4

TOTAL

select an opening selling and administrative expenses budget item

Sales in units

Total selling and administrative costs

Total fixed cost

Variable rate per unit

Total variable cost

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 an item

Variable rate per unit

Total fixed cost

Sales in units

Total variable cost

Total selling and administrative costs

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select a summarizing line for the first part

Variable rate per unit

Total selling and administrative costs

Sales in units

Total variable cost

Total fixed cost

$

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 an item

Total variable cost

Sales in units

Total fixed cost

Total selling and administrative costs

Variable rate per unit

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing selling and administrative expenses budget item

Total variable cost

Sales in units

Total fixed cost

Total selling and administrative costs

Variable rate per unit

$

enter a total amount

$

enter a total amount

$

enter a total amount

$

enter a total amount

$

enter a total amount

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