Current Designs 9 (Part Level Submission) Diane Buswell is preparing the 2020 budget for one of Current Designs' rotornolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 1,300 kayaks 1,600 kayaks Quarter 3 1.150 kayaks Quarter 4 1,150 kayaks Quarter 2 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 1,600 units for the second quarter. Ending Inventory of finished goods at December 31, 2019, will be 390 rotomolded kayaks. Production of each kayak requires 42 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 21,800 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 $1.20 per pound, and the finishing kits cost $160 each. Production of a single kayak requires 3 hours of time by more experienced, type temployees and 4 hours of finishing time by type 11 employees. The type 1 employees are paid $12 per hour, and the type It employees are paid $9 per hour Selling and administrative experies for this line are expected to be $47 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 100% of labor costs. 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 units 1,300 1,600 1.150 1,150 Add Desired Ending Finished Goods Unit 480 345 330 D D 1700 1495 1430 Total Required Units Beginning the Goods Unit 390 450 345 345 1390 Required Production 1465 1466 1150 5140 1135 Prepare the direct materials budget for this product line by quarter and in total for 2020. (Round cost per pound to 2 decimal places, e9. 1.25 and other answers to decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder For the Year Ending December 31, 2020 Quarter Q2 Q3 Total Units to be produced 1390 1465 1150 1135 Q1 04 42 42 42 58380 51530 48300 47670 15383 12075 11918 Pounds of Polyethylene Powder Per Unit Total Pounds Needed for production Add , Desired Ending Inventory of Powder Total Pounds of Powder Required Less Beginning Inventory of Powder Pounds of Polyethylene Powder to be purchased Cost Per Pound 70636 73605 60218 21,800 V Cost of Polyethylene Powder to be purchased Cost of Required Finishing Kits Total Costs for Direct Materials $ > $ Your answer is correct. Prepare the selling and administrative expenses budget for this product line by quarter and in total for 2020