22A Production and direct materials budgets (Learning Objective 2) Osborne Manufacturing produces self-watering planters for use in upscale retail estab- E9 ents. Sales projections for the first five months of the upcoming year show the esti- lishm mated unit sales of the planters each month to be as follows: Number of planters to be sold 3,400 3,800 3,300 4,900 4,600 January February March . April... May Inventory at the start of the year was 850 planter the end of each month in the upcoming year should be equal to 25% of the following month's budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound