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.

How do you get the "desired ending inventory of direct materials" for march and the quarter?

Donaldson 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 EEB (Click the icon to view additional information.) 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 $0.20 per pound Read the requirements Data Table January Februa March Quarter 3,500 3 10,500 2,205 12,705 3,675 3,700 3 11,100 10,875 Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Total quantity needed Number of planters to be so 3,400 3,800 3,300 4,900 4,600 32,625January 11,025 2,220 13,245 February.... March April.. May Desired ending inventory of direct materials Enter any number in the edit fields and then click Check