Question

anters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the e The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sa of the polypropylen osts $0 Requirements each month in the f Manufacturing 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased tion Budget January through I January Febr Print Done ck Check Answer. Clear All

Answer 1

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McKnight
Production Budget	January	February	March	Quarter	April	May	Note
Unit sales	3,200.00	3,000.00	3,500.00	9,700.00	4,300.00	4,600.00	A
Plus: Desired Ending Inventory	750.00	875.00	1,075.00		1,150.00		B= 25% of A of next month
Total Needed	3,950.00	3,875.00	4,575.00		5,450.00		C= A+B
Less: Beginning Inventory	800.00	750.00	875.00		1,075.00		D= B of previous month. For January its given in the question.
Production Budget	3,150.00	3,125.00	3,700.00	9,975.00	4,375.00		E=C-D
Purchase Budget	January	February	March	Quarter	April	May
Production Budget	3,150.00	3,125.00	3,700.00	9,975.00	4,375.00		See E
Polypropylene required per unit	2.00	2.00	2.00		2.00		F
Polypropylene required for production	6,300.00	6,250.00	7,400.00		8,750.00		G=E*F
Plus: Desired Ending Inventory	1,250.00	1,480.00	1,750.00				H= 20% of G of next month
Total Needed	7,550.00	7,730.00	9,150.00				I= G+H
Less: Beginning Inventory	-	1,250.00	1,480.00				J= H of previous month. Nothing is given in the question for January so its blank.
Purchase Budget (pounds)	7,550.00	6,480.00	7,670.00				K=I-J
Cost per pound	0.10	0.10	0.10				L
Purchase Budget ($)	755.00	648.00	767.00				M=K*L