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Rouse 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: (Click the icon to view additional information.) Inventory at the start of the year was 900 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 10% 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. Show Transcribed Text Data Table Number of planters to be sold January 3,600 February 3,300 March........ 3,100 April 4,700 May 4,900 Requirement 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. Rouse Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Show Transcribed Text January February Direct Materials Budget March Quarter February March Quarter Units to be produced For the Months of January through March January Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Beginning inventory of direct materials Total quantity needed Less: Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases Show Transcribed Text

Rouse 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: (Click the icon to view additional information.) Inventory at the start of the year was 900 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 10% 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. Show Transcribed Text Data Table Number of planters to be sold January 3,600 February 3,300 March........ 3,100 April 4,700 May 4,900 Requirement 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. Rouse Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Show Transcribed Text January February Direct Materials Budget March Quarter February March Quarter Units to be produced For the Months of January through March January Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Beginning inventory of direct materials Total quantity needed Less: Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases Show Transcribed Text

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Rouse 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: (Click the icon to view additional information.) Inventory at the start of the year was 900 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 10% 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. Show Transcribed Text Data Table Number of planters to be sold January 3,600 February 3,300 March........ 3,100 April 4,700 May 4,900
Transcribed Image Text:Rouse 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: (Click the icon to view additional information.) Inventory at the start of the year was 900 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 10% 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. Show Transcribed Text Data Table Number of planters to be sold January 3,600 February 3,300 March........ 3,100 April 4,700 May 4,900
Requirement 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. Rouse Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Show Transcribed Text January February Direct Materials Budget March Quarter February March Quarter Units to be produced For the Months of January through March January Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Beginning inventory of direct materials Total quantity needed Less: Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases Show Transcribed Text
Transcribed Image Text:Requirement 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. Rouse Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Show Transcribed Text January February Direct Materials Budget March Quarter February March Quarter Units to be produced For the Months of January through March January Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Beginning inventory of direct materials Total quantity needed Less: Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases Show Transcribed Text
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