need help with direct materials budget
Current Attempt in Progress Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 Quarter 2 Quarter 3 Quarter 4 2,900 kayaks 3,300 kayaks 2,700 kayaks 2,700 kayaks Current Designs' policy is to have finished goods endir inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1,100 units for the first quarter and 3,300 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 870 rotomolded kayaks. Production of each kayak requires 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending Inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2019, is 21,800 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 $1.40 per pound, and the finishing Kits cost $180 each. Production of a single kayak requires 4 hours of time by more experienced, type I employees and 5 hours of finishing time by type ll employees. The type I employees are paid $10 per hour, and the type ll employees are paid $15 per hour. Selling and administrative expenses for this line are expected to be $43 per unit sold plus $8,300 per quarter Manufacturing overhead is assigned at 150% of labor costs. Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020. MacBook Pro IJUS OPISbor costs. 2 43 per hit sold plus $8.300 per quarter Manufacturing overhead is assigned at Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020 CURRENT DESIGNS Production Budget For the Year Ending December 31, 2020 : Expected Unit Sales 2.900 2700 3890 Add : : Desired Ending Finished Goods Unit Total Required Units ! Less :: Beginning Finished Goods Unit Required Production Units : 3510 870) i 1990) (810) 3020 2700 e Textbook and Media Assistance Used - Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places, s 125 and other MacBook Pro @ 00 Selling and administrative expenses for this line are expected to be $43 per unit sold plus $8.300 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget For the Year Ending December 31, 2020 Q3 Q4 Total 2,900 3,300 2,700 990 810 B10 330 3890 4110 3510 3030 (870) 1990) 1 (810) (810) 1 3020 3120 2700 2220 11060 e Textbook and Media Assistance Used - Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places. es. 1.25 and other www. com - MacBook Pro - Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places. e.g. 1.25 and other answers to decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder For the Year Ending December 31, 2020 Quarter Q2 3020 3120 Q1 Q3 Units to be produced 2700 Pounds of Polyethylene Powder Per Unit Total Pounds Needed for Production 169120 174720 151200 43680 37800 31080 Add : Desired Ending Inventory of Powder Total Pounds of Powder Required Less : Beginning Inventory of Powder 212800 212520 182280 (42280) (43680) (37800) i Pounds of Polyethylene Powder to be purchased 168840 144480 Cost Per Pound 1.40 140 170520 1.40 238728 180 782328 $ $ Cost of Polyethylene Powder to be purchased $ 202272 Cost of Required Finishing Kits 236376 180 797976 180 Total Costs for Direct Materials $ $ 688272 e Textbook and Media Assistance Used MacBook Pro - Your answer is partially correct. Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places, s 125 and other answers to decimal places, eg. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder For the Year Ending December 31, 2020 Quarter Q2 3020 3120 2700 2220 169120 174720 151200 124320 37800 43680 31080 5450 212800 212520 182280 129770 1436801 (37800) (42280) 1 (31080) RO 165840 144480 170520 1.40 1.40 1.40 138166 202272 238728 $ 236376 180 180 180 537766 S 22806342 688272 797976 782328 Assistance Used e Textbook and Media MacBook Pro
