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 2,500 kayaks Quarter 2 3,200 kayaks Quarter 3 2,150 kayaks Quarter 4 2,150 kayaks 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 2021 are 1,100 units for the first quarter and 3,200 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 750 rotomolded kayaks. Production of each kayak requires 54 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 20,000 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 $1.00 per pound, 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 $16 per hour, and the type II employees are paid $13 per hour. Selling and administrative expenses for this line are expected to be $47 per unit sold plus $8,300 per quarter. Manufacturing overhead is assigned at 160% of labor costs. v (a) Z Your answer is partially correct. Try again. 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 Q1 Q2 Q3 Q4 Total Expected Unit Sales 2,500 3,200 2,150 2,150 Add v Desired Ending Finished Goods Unit v 960 645 645 220 Total Required Units 3460 3845 2795 2370 Less v Beginning Finished Goods Unit 750 645 645 330 Required Production Units 3200 2150 2040 10100 2710

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 2,500 kayaks Quarter 2 3,200 kayaks Quarter 3 2,150 kayaks Quarter 4 2,150 kayaks 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 2021 are 1,100 units for the first quarter and 3,200 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 750 rotomolded kayaks. Production of each kayak requires 54 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 20,000 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 $1.00 per pound, 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 $16 per hour, and the type II employees are paid $13 per hour. Selling and administrative expenses for this line are expected to be $47 per unit sold plus $8,300 per quarter. Manufacturing overhead is assigned at 160% of labor costs. v (a) Z Your answer is partially correct. Try again. 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 Q1 Q2 Q3 Q4 Total Expected Unit Sales 2,500 3,200 2,150 2,150 Add v Desired Ending Finished Goods Unit v 960 645 645 220 Total Required Units 3460 3845 2795 2370 Less v Beginning Finished Goods Unit 750 645 645 330 Required Production Units 3200 2150 2040 10100 2710

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Designs 9 (Part Level Submission)

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	2,500	kayaks
Quarter 2	3,200	kayaks
Quarter 3	2,150	kayaks
Quarter 4	2,150	kayaks

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 2021 are 1,100 units for the first quarter and 3,200 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 750 rotomolded kayaks.

Production of each kayak requires 54 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 20,000 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 $1.00 per pound, 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 $16 per hour, and the type II employees are paid $13 per hour.

Selling and administrative expenses for this line are expected to be $47 per unit sold plus $8,300 per quarter. Manufacturing overhead is assigned at 160% of labor costs.

(a)


	Your answer is partially correct. Try again.

Prepare the production budget for this product line by quarter and in total for 2020.

Current Designs 9 (Part Level Submission)
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
2,500 kayaks
Quarter 2
3,200 kayaks
Quarter 3
2,150 kayaks
Quarter 4
2,150 kayaks
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 2021 are 1,100 units for the first quarter and
3,200 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 750 rotomolded kayaks.
Production of each kayak requires 54 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 20,000 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 $1.00 per pound, 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 $16 per hour, and the type II employees are paid $13 per hour.
Selling and administrative expenses for this line are expected to be $47 per unit sold plus $8,300 per quarter. Manufacturing overhead is assigned at 160% of labor costs.
(a)
Z Your answer is partially correct. Try again.
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
Q1
Q2
Q3
Q4
Total
Expected Unit Sales
2,500
3,200
2,150
2,150
Add v
Desired Ending Finished Goods Unit v
960
645
645
220
Total Required Units
3460
3845
2795
2370
Less v
Beginning Finished Goods Unit
750
645
645
330
Required Production Units
2710
3200
2150
2040
10100
Attempts: 1 of 2 used
SUBMIT ANSWER
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