$($Click the icon to view more information.$)$Darley is continuing to search for ways to reduce its costs and its impact

on the environment. PET plastic is melted and blown over juice bottle

molds to produce the bottles. One idea Darley's engineers have

suggested is to retrofit the juice bottle molds and change the plastic

formulation slightly so that $25\%$ less PET plastic is used for each bottle.

The average kilograms of PET per juice bottle before any redesign is

$0\mathrm{.}012kg.$ The cost of retrofitting the juice bottle molds will result in

a one$-$time charge of $$147,082,$ while the plastic reformulation will

cause the average cost per kilogram of PET plastic to change from

$$5\mathrm{.}00$ to $$5\mathrm{.}20.$

Data table

For the upcoming year, management expects the beginning inventory of PET to be $9,000$

kilograms, while ending inventory is expected to be $11,690$ kilograms. During the first three

quarters of the year, management wants to keep the ending inventory of PET at the end of

each quarter equal to $30\%$ of the following quarter's PET needs.

Read the requirements.

Requirement $1.$ Using the original data $($before any redesign of juice bottles$),$ prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the

upcoming year and for the year in total.

Start by preparing the direct materials budget through the total quantity needed, then complete the budget.

Darley Beverages

Direct Materials Budget

For quarters $1$ through $4$