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Sarah Allen is preparing the 2022 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department and executive team

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Sarah Allen is 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 1,200 kayaks Quarter 2 1,500 kayaks Quarter 3 1.000 kayaks Quarter 4 1,000 kayaks Current Designs policy is to have finished goods ending inventory in a quarter equal to 15% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 1.500 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 180 rotomoulded kayaks. Production of each kayak requires 60 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is 21,400 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 $1.00 per kilogram and the finishing kits cost $170 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 ! employees are paid $15 per hour, and the type ll employees are paid $12 per hour. Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7.500 per quarter Manufacturing overhead is assigned at 160% of labour costs. Prepare the production budget for this product line by quarter and in total for 2022, CURRENT DESIGNS employees are paid 515 per hour, and the type employees are paid 512 per hour. Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7.500 per quarter Manufacturing overhead is assigned at 160% 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, 202 Q1 Q2 Sales in units Required ending inventory Total amount required Units required for production Hours per unit Beginning inventory Total labour costs is product line by quarter and in total for 2022.(Round cost per kg to 2 decimal to O decimal places, e.g. 125.) CURRENT DESIGNS employees are paid $15 per hour, and the type Il employees are paid $12 per hour Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7.500 per quarter Manufacturing overhead is assigned at 160% of labour costs. Prepare the production budget for this product line by quarter and in total for 2022 CURRENT DESIGNS Production Budget or the Year Ending December 31, 2022 02 Q3 04 TOTAL Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per k3 to 2 decimal places, e.8. 12.25 and other answers to o decimal places, e.8. 125.) 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, c.8. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylen For the Year Ending December 31 Quarter Q1 Q2

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