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Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few
Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a company
that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes
from the canoe companys headquarters in Winona, Minnesota.
Current Designs makes kayaks using two different processes. The rotational molding process
uses high temperature to melt polyethylene powder in a closed rotating metal mold to produce a
complete kayak hull and deck in a single piece. These kayaks are less labour-intensive and less expensive
for the company to produce and sell.
Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as
the composite process). Layers of fiberglass or Kevlar are carefully placed by hand in a mold and are
bonded with resin. Then, a high-pressure vacuum is used to eliminate any excess resin that would
otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of
skilled labour as each boat is individually finished. The exquisite finish of the vacuum bagged composite
kayaks gave rise to Current Designs tag line, A work of art, made for life.
Current Designs has the following managers:
Mike Cichanowski, CEO
Diane Buswell, Chief Financial Officer / Controller
Deb Welch, Purchasing Manager
Bill Johnson, Sales Manager
Dave Thill, Kayak Plant Manager
Rick Thrune, Production Manager for Composite Kayaks.
Requirements:
1. What are the primary accounting information needs of each manager?
2. Identify one special-purpose management accounting report that could be designed for each
manager. Include the name of the report, the information it would contain, and how frequently it
should be issued.
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