Pad4:43 PM86%Va edugen.wileyplus.comC + 5WileyPLUSWeygandt, Managerial Accounting, 8eHelp | System AnnouncementsCALCULATOR PRINTER VERSION 1 BACKNEXTASSIGNMENT RESOURCESAssignment #4Question 1Question 1Diane Buswell is preparing the 2020 budget for one of Current Designs’ rotomolded kayaks. Extensive meetings with members of the sales departmentQuestion 2and executive team have resulted in the following unit sales projections for 2020.Question 3Question 4Quarter 11,300 kayaksQuestion 5Quarter 22,000 kayaksQuestion 6Quarter 3950 kayaksQuarter 4950 kayaksReview ScoreReview Results by StudyObjectiveCurrent Designs’ policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter’s anticipated sales. Preliminary salesprojections for 2021 are 1,100 units for the first quarter and 2,000 units for the second quarter. Ending inventory of finished goods at December 31, 2019,will be 325 rotomolded kayaks .Production of each kayak requires 52 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the endinginventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethyleneOpowder on December 31, 2019, is 20,800 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain asignificant inventory of the finishing kits.The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $160 each. Production of a single kayak requires 2 hours oftime 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 typeII employees are paid $10 per hour.of labor costs .Selling and administrative expenses for this line are expected to be $48 per unit sold plus ,100 per quarter. Manufacturing overhead is assigned at 140%Prepare the production budget for this product line by quarter and in total for 2020.CURRENT DESIGNSProduction Budget24Total
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