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Linda Williams is preparing the 2 0 2 2 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department
Linda Williams is preparing the 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
Current Designs' policy is to have finished goods ending inventory in a quarter equal to of the next quarter's 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 rotomoulded kayaks.
Production of each kayak requires 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 kg 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 kilogram, 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 labour costs.
Prepare the production budget for this product line by quarter and in total for
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