Timothy Powell is preparing the 2023 budget for one of Slippery Boards, Inc.'s refurbished surfboards. Slippery...

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Timothy Powell is preparing the 2023 budget for one of Slippery Boards, Inc.'s refurbished surfboards. Slippery Boards refurbishes surf boards in Maine where their founders surf in wet suits year-round at Higgins Beach. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2023. Quarter 1 1,000 boards - Quarter 2 1,500 boards Quarter 3-750 boards Quarter 4-750 boards Slippery Boards, Inc.'s policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2024 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending inventory of finished goods as of December 31, 2022, was 200 refurbished surfboards. Production of each board requires 54 pounds of polyethylene powder and a finishing kit. 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, 2022, is 19,400 pounds. The refurbishing kits can be assembled as they are needed. As a result, Slippery Boards does not maintain a significant inventory of the finishing kits. The polyethylene powder used in the process costs $1.50 per pound, and the finishing kits cost $170 each. Production of a single board 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 $15 per hour, and the type II employees are paid $12 per hour. Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Instructions Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and administrative budget for this product line by quarter and in total for 2023. Timothy Powell is preparing the 2023 budget for one of Slippery Boards, Inc.'s refurbished surfboards. Slippery Boards refurbishes surf boards in Maine where their founders surf in wet suits year-round at Higgins Beach. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2023. Quarter 1 1,000 boards - Quarter 2 1,500 boards Quarter 3-750 boards Quarter 4-750 boards Slippery Boards, Inc.'s policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2024 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending inventory of finished goods as of December 31, 2022, was 200 refurbished surfboards. Production of each board requires 54 pounds of polyethylene powder and a finishing kit. 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, 2022, is 19,400 pounds. The refurbishing kits can be assembled as they are needed. As a result, Slippery Boards does not maintain a significant inventory of the finishing kits. The polyethylene powder used in the process costs $1.50 per pound, and the finishing kits cost $170 each. Production of a single board 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 $15 per hour, and the type II employees are paid $12 per hour. Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Instructions Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and administrative budget for this product line by quarter and in total for 2023.