Question

Johnson Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 640 planters. The desired inventory of planters at the end of each month should be equal to 20% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 10% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.25 per pound. Read the requirements. 620 January February March Quarter Unit sales 3,200 3,600 3,100 9,900 720 Plus: Desired ending inventory 900 620 900 Total needed 3,920 4,220 4,000 10,800 Less: Beginning inventory 640 720 640 3.280 3,500 3,380 10,160 Units to produce Requirement 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. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. i Data Table Johnson Manufacturing Direct Materials Budget For the Months of January through March Number of planters to be sold January February March Quarter January ...... 3.200 Units to be produced 3280 3500 3380 1 0160 February .... 3,600 Multiply by: Quantity of direct materials needed per unit March... .. Quantity needed for production April.... 4,500 Plus: Desired ending inventory of direct materials May ......... 4.700 Total quantity needed 3,100 Enter any number in the edit fields and then click Check Answer. Print Done 5 part remaining Clear All Check Answer

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Requirement 1) 3100 4 Unit Sales 5 Plus Desired Ending Inventory 6 Total needed 7 Less: Beginning Inventory 8 Units to produce January 3200 720 3920 640 3280 Febraury 3600 620 4220 720 3500 900 4000 Quarter 9900 2240 12140 1980 10160 620 3380 Quarter 10160 10 Requirement 2) Johnson Manufacturing Direct Material Budget For The Month of January Through March January Febraury March 15 Units to be Produced 3280 3500 3380 16 Multiply By: Quantity of direct material needed per unit 4 17 Quantity needed for production 13120 13520 18 Plus: Desired ending inventory of direct materials 1816 ((((4500*80% +(4700*20%)) (14000*10%) (13520*10%) *4)*10%) 20 Total Quantity needed 14520 15352 15336 21 Note The unbold amounts are not part of final answer and are just for understanding purpose only. 40640 1816 42456 22