Question

February Cleary 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: E (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. INCY Cment.licparc a prou cuon vuuyetir cacer morre Est quarter Or Die year, cruumy pruuucuorrur UMS TI CALI TOT an ion quarter. Data Table Cleary Manufacturing Production Budget For the Months of January through March Number of planters to be sold January February March Quarter January 3,200 Unit sales 3,200 3,600 3,100 9,900 3,600 Plus: Desired ending inventory 720 620 900 900 March 3.100 Total needed 3,920 4,220 4,000 10.800 April 4,500 640 Less: Beginning inventory 720 620 640 May 4.700 3.280 3,500 3,380 10,160 Units to produce Print Done 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 Cleary Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced 3280 35001 3380 10160 Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check Answer

Answer 1

10 A B с D E 1 Clearly Manufacturing 2 Production Budget 3 For the month of January through March 4 January February March Quarter 5 Unit sales 3,200 3,600 3,100 9,900 6 Plus: Desired ending inventory 720 620 900 900 7 Total needed 3,920 4,220 4,000 10,800 8 Less: Beginning inventory 640 720 620 640 9 Units to produce 3,280 3,500 3,380 10,160 11 Clearly Manufacturing 12 Direct materials Budget 13 For the month of January through March 14 January February March Quarter 15 Units to be Produced 3,280 3,500 3,380 10,160 16 Multiply by: Quantity of direct materials needed per Unit 4 4 17 Quantity needed for production 13,120 14,000 13,520 40,640 18 Plus: Desired ending Inventory of direct materials 1,400 1,352 1,816 1,816 19 Total quantity needed 14,520 15,352 15,336 42,456 20 Less: Beginning inventory of direct materials 1,312 1,400 1,352 1,312 21 Quantity to purchase 13,208 13,952 13,984 41,144 22 Maultiply by: Cost per pound $ 0.25$ 0.25 $ 0.25$ 0.25 23 Total cost of direct material purchases $ 3,302 $ 3,488$ 3,496 $ 10,286 24 Note: 25 April 26 Unit sales 4500 27 Plus: Desired ending inventory (May sales*20%) 940 28 Total needed 5440 29 Less: Beginning inventory 30 Units to produce 4,540 4 4 900

NP A B с D E Clearly Manufacturing 2 Production Budget 3 For the month of January through March 4 January February March Quarter 5 Unit sales 3200 3600 3100 =+B5+C5+D5 6 Plus: Desired ending inventory =+C5*20% =+D5*20% -4500*20% =+D6 7 Total needed =+B5+B6 =+C5+C6 =+D5+D6 =+E5+E6 8 Less: Beginning inventory 640 =+B6 =+C6 =+B8 9 Units to produce =+B7-B8 =+C7-C8 =+D7-08 =+E7-E8 10 11 Clearly Manufacturing 12 Direct materials Budget 13 For the month of January through March 14 January February March Quarter 15 Units to be Produced =+B9 =+C9 =+D9 =+E9 16 Multiply by: Quantity of direct materials needed per Unit 4 4 17 Quantity needed for production =+B15*B16 =+C15*C16 =+D15*D16 =+E15*E16 18 Plus: Desired ending Inventory of direct materials =+C17*10% =+D17*10% -4540*4*10% =+D18 19 Total quantity needed =+B17+B18 =+C17+C18 =+D17+D18 =+E17+E18 20 Less: Beginning inventory of direct materials =+B17*10% =+B18 =+C18 =+B20 21 Quantity to purchase =+B19-B20 =+C19-C20 =+D19-D20 =+E19-E20 22 Maultiply by: Cost per pound 0.25 0.25 0.25 0.25 23 Total cost of direct material purchases =+B21*B22 =+C21*C22 =+D21*D22 =+E21*E22 24 Note: 25 April 26 Unit sales 4500 27 Plus: Desired ending inventory (May sales*20%) -4700*20% 28 Total needed =+B26+B27 29 Less: Beginning inventory =+E6 30 Units to produce =+B28-B29