mated unit sales of the planters each month to be as follows:lishments. Sales projections for the first five months of the upcoming year show the esti-ases in the budget.Osborne Manufacturing produces self-watering planters for use in upscale retail estab-E9-22A Production and direct materials budgets (Learning Objective 2)Number of planters to be soldJanuary.3,400February3,800March3,300April.4,900May..4,600Inventory at the start of the year was 850 planters. The desired inventory of planters atthe end of each month in the upcoming year should be equal to 25% of the followingmonth's budgeted sales. Each planter requires three pounds of polypropylene (a type ofplastic). The company wants to have 20% of the polypropylene required for next month'sproduction on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements1. Prepare a production budget for each month in the first quarter of the year, includingproduction in units for each month and for the quarter.2. Prepare a direct materials budget for the polypropylene for each month in the firstquarter of the year, including the pounds of polypropylene required and the total costof the polypropylene to be purchased.

Answered: Image /qna-images/answer/72f9b18f-149a-487b-a6c4-50f2d18e2d3d.jpgBeginning inventory given as 850 unit planters ending inventory is 25% of following month sales planters Ending raw material inventory ( polypropylene) is 20% of next month production Cost per polypropylene is 0.20

Business

Accounting

Requirements 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.

Requirements 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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