Dorothy Taylor 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   2,900 kayaks Quarter 2   3,400 kayaks Quarter 3   2,600 kayaks Quarter 4   2,600 kayaks Current Designs’ policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter’s anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 3,400 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 725 rotomoulded kayaks. Production of each kayak requires 40 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 21,800 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 $1.20 per kilogram, and the finishing kits cost $180 each. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $13 per hour, and the type II employees are paid $10 per hour. Selling and administrative expenses for this line are expected to be $44 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 140% 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, 2022     Q1   Q2   Q3   Q4   TOTAL select an opening production budget item                                                                                            select a production budget item                                                                                            select a summarizing line for the first part                                                                          enter a total number of units for the first part   enter a total number of units for the first part   enter a total number of units for the first part   enter a total number of units for the first part     select between addition and deduction                                                                       : select a production budget item                                                                          enter a number of units   enter a number of units   enter a number of units   enter a number of units   enter a number of units select a closing production budget item                                                                          enter a total number of units   enter a total number of units   enter a total number of units   enter a total number of units   enter a total number of units                         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, e.g. 125.) CURRENT DESIGNS Direct Materials Budget--Polyethylene Powder For the Year Ending December 31, 2022     Quarter         Q1   Q2   Q3   Q4   TOTAL select an opening direct materials budget item                                                                                          enter a number of units select an item                                                                                          enter a number of kilograms select a summarizing line for the first part                                                                                          enter a total number of kilograms for the first part select between addition and deduction                                                                       : select an item                                                                                          enter a number of kilograms select a summarizing line for the second part                                                                                          enter a total number of kilograms for the second part select between addition and deduction                                                                       : select an item                                                                                          enter a number of kilograms select a summarizing line for the third part                                                                                          enter a total number of kilograms for the third part select an item                                                                                                                  select an item                                                                          enter    enter            enter a dollar amount select a closing direct materials budget item

Dorothy Taylor 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.


Current Designs’ policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter’s anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 3,400 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 725 rotomoulded kayaks.

Production of each kayak requires 40 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 21,800 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 $1.20 per kilogram, and the finishing kits cost $180 each. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $13 per hour, and the type II employees are paid $10 per hour.

Selling and administrative expenses for this line are expected to be $44 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 140% of labour costs.