Additional information

$\backslash$table$[[$Number of planters to be sold$],[$January$,3,400],[$February$,3,800],[$March$,3,300],[$April$,4,900],[$May$,4,600]]$

Inventory at the start of the year was $850$ planters. The desired inventory of planters at the end of each month 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\mathrm{.}20$ per pound.

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Requirement $2.$ Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including 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.

Osborne Manufacturing

Direct Materials Budget

For the Months of January through March

Units to be produced

Multiply by: Quantity of direct materials needed per unit

Quantity needed for production

Plus: Desired ending inventory of direct materials

Total quantity needed