Second Designs Case Study Anne Maxwell is preparing the 2021 budget for one of Second designs Jetskis. Extensive meetings with members of the sales department and executive management have resulted in the following unit sales projections for 2021. For quarter 1 the projected sales are 1000 Jetskis and each quarter the number increases by 10% from the previous quarter. They expect to sell each Jetski for $100 in quarter one and a 20% increase in each quarter to previous after that. Second designs policy is to have finished goods inventory in a quarter equal to 20% of the next quarters anticipated Sales. Preliminary Sales projections for 2022 are 500 Jetskis for the first quarter and 600 Jetskis for the second quarter. Ending finished goods at December 2020 are 300 Jetskis. Production of each Jetski requires 50 pounds of thermolyne powder and a finishing kit (seat, engine, metal etc). Company policy is that the ending inventory for thermolyne should be 25% of the amount needed in production for the next quarter. Assume that the ending inventory of thermolyne in December 2020 is 12000 pounds and for the first quarter in 2022 is 14000 pounds. The finishing kit can be assembled as they are needed based on production. As a result Second designs does not maintain a significant inventory (opening and closing) of the finishing kits. The thermolyne powder used in the production of the Jetskis cost $1.50 per pound and the finishing kit costs $170 each. Production of a single jetski required 3 hours of work by employees. Employees are paid $15 per hour. Selling and administrative are expected to be $45 per unit sold plus $7500 per quarter. Manufacturing overhead is assigned at 150% of labour costs and additional fixed costs of $500 for depreciation and $300 for maintenance costs each quarter. Interest per quarter are expected to be $200 and taxes $400 per quarter. Requirements Prepare the sales budget, production budget, direct material budget, manufacturing overhead budget, selling and administrative budget for each quarter and for the year 2021 and prepare a Budgeted Income Statement for the year 2021. Your answer to be completed on an Excel sheet using formulas rather than a calculator