Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with part b Diane Buswell is preparing the 2025 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the
please help with part b
Diane Buswell is preparing the 2025 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 2025. Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2026 are 1,100 units for the first quarter and 2,600 units for the second quarter. Ending inventory of finished goods at December 31,2024 , will be 630 rotomolded kayaks. Production of each kayak requires 48 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, 2024, is 21,600 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 $1.20 per pound, and the finishing kits cost $140 each. Production of a single kayak requires 5 hours of time by more experienced, type I employees and 6 hours of finishing time by type II employees. The type I employees are paid $19 per hour; and the type ll employees are paid $16 per hour. Selling and administrative expenses for this line are expected to be $46 per unit sold plus $8,700 per quarter. Manufacturing overhead is assigned at 120% of labor costs. Question 3 of 10 0.2/1 Q1 Q2 $$ 0.2/1 Ruestion 3 of 10 Quarter Q2 Q3 Q4 Total Diane Buswell is preparing the 2025 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2025. Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2026 are 1,100 units for the first quarter and 2,600 units for the second quarter. Ending inventory of finished goods at December 31,2024 , will be 630 rotomolded kayaks. Production of each kayak requires 48 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2024, is 21,600 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $140 each. Production of a single kayak requires 5 hours of time by more experienced, type I employees and 6 hours of finishing time by type II employees. The type I employees are paid $19 per hour; and the type ll employees are paid $16 per hour. Selling and administrative expenses for this line are expected to be $46 per unit sold plus $8,700 per quarter. Manufacturing overhead is assigned at 120% of labor costs. Question 3 of 10 0.2/1 Q1 Q2 $$ 0.2/1 Ruestion 3 of 10 Quarter Q2 Q3 Q4 Total 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