Barbara Jones 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 $\backslash (25\backslash \%\backslash )$ of the next quarter's anticipated sales. Preliminary sales projections for $2023$ are $1,100$ units for the first quarter and $3,600$ units for the second quarter. Ending inventory of finished goods at December $31,2021,$ will be $700$ rotomoulded kayaks.

Production of each kayak requires $56$ kg of polyethylene powder and a finishing kit $($rope$,$ seat, hardware, etc$).$ Company policy is that the ending inventory of polyethylene powder should be $\backslash (20\backslash \%\backslash )$ of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December $31,2021,$ is $\backslash (20,000\backslash$mathrm$\{$~kg$\}\backslash ).$ 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 $\backslash (\backslash$$ $1\mathrm{.}50\backslash )$ per kilogram, and the finishing kits cost $\backslash (\backslash$$ $150\backslash )$ 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 $\backslash (\backslash$$ $20\backslash )$ per hour, and the type II employees are paid $\backslash (\backslash$$ $17\backslash )$ per hour.

Selling and administrative expenses for this line are expected to be $\backslash (\backslash$$ $43\backslash )$ per unit sold plus $\backslash (\backslash$$ $7,100\backslash )$ per quarter. Manufacturing overhead is assigned at $\backslash (160\backslash \%\backslash )$ of labour costs.

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$,12\mathrm{.}25$ 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

:

Q$1$

Q$2$

DM needed for production

Plus : Required ending inventory

Less $,$

DM purchases required $($kg$)--.\backslash$begin$\{$tabular$\}\{$l$\}$

$\backslash$$ $\backslash \backslash$

$\backslash$hline$\backslash (\backslash$$ $\backslash )$

$\backslash$end$\{$tabular$\}\backslash$$

$\backslash$$

Total cost for direct materials

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