Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes from the canoe company's headquarters in Winona, Minnesota.

Current Designs makes kayaks using two different processes. The rotational molding process uses high temperature to melt polyethylene powder in a closed rotating metal mold to produce a complete kayak hull and deck in a single piece. These kayaks are less labor-intensive and less expensive for the company to produce and sell.

Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as the composite process). Layers of fiberglass or Kevlar? are carefully placed by hand in a mold and are bonded with resin. Then, a highpressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of skilled labor as each boat is individually finished. The exquisite finish of the vacuum-bagged composite kayaks gave rise to Current Designs' tag line, "A work of art, made for life."Current Designs has the following managers:

Mike Cichanowski, CEODiane Buswell, ControllerDeb Welch, Purchasing ManagerBill Johnson, Sales ManagerDave Thill, Kayak Plant ManagerRick Thrune, Production Manager for Composite Kayaks

Instructions

a. What are the primary information needs of each manager?

b. Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued.

c. When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the cost items and amounts shown above (amounts are assumed). Enter the amount for each item in the appropriate cost category. Then sum the amounts in each cost category column.

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Current Designs Page Layout Formulas Data Review Home Imert View P18 D. Product Costs Period Costs Direct Direct Manufacturing Overhead Amount з Materials Labor Payee Winona Agency Purpose Property insurance for the manufacturing plant 3,200 Bill Johnson (sales manager) 6 Xcel Energy 7 Winona Printing Payroll check-payment to sales 1,700 manager Electricity for manufacturing plant Price lists for salespeople 450 85 Jim Kaiser (sales representative) Sales commissions 1,250 Payroll check-payment to plant manager Dave Thill 1,450 (plant manager) Dana Schultz 10 (kayak assembler) Payroll check-payment to kayak assembler 760 Composite One 11 Bagging film used when kayaks are assembled; it is discarded after use 260 Fastenal 12 Shop supplies-brooms, paper towels, etc. 890 Polyethylene powder which is the main ingredient for the rotational molded kayaks Ravago 3,170 13 14 Winona County Property taxes on manufacturing plant Kevlar fabric for composite kayaks 5,480 North American 4,930 15 Composites Trash disposal for the company office building Waste 16 Management 660 None 17 Journal entry to record depreciation of manufacturing equipment 4,540