Prepare a production budget for each month in the first quarter of the year, Including production in units for each month and for the quarter

 

  

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1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. 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. Inventory at the start of the year was 800 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 two 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 $0.10 per pound. Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January 3,200 750 3,950 1200 2750 February 3,000 875 3,875 1400 2475 March 3,500 1.075 4,575 1720 2855 Quarter 9,700 1,075 10,775 1200 9575 January..... February March April.. May Number of planters to be sold 3,200 3,000 3,500 4,300 4,600 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. 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. Inventory at the start of the year was 800 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 two 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 $0.10 per pound. Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January 3,200 750 3,950 1200 2750 February 3,000 875 3,875 1400 2475 March 3,500 1.075 4,575 1720 2855 Quarter 9,700 1,075 10,775 1200 9575 January..... February March April.. May Number of planters to be sold 3,200 3,000 3,500 4,300 4,600

Answer rating: 100% (QA)

Production Budget January February March Quarter Unit sales 3200 3000 350... View the full answer