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. 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. Number of planters to be sold January ..... February...... March 3,200 3,600 3,100 4,500 4,700 April .. May.......... Gable 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 640 planters. The desired inventory of planters at the end of each month should be equal to 20% of the following month's budgeted sales. Each planter requires four 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 $0.25 per pound. Read the requirements 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. Gable Manufacturing Production Budget For the Months of January through March January February Unit sales 3,200 3,600 Plus: Desired ending inventory 620 Total needed 3,920 4,220 640 720 Less: Beginning inventory 3,280 3,500 Units to produce March 3,100 900 Quarter 9,900 900 10,800 4,000 620 3,380 640 10,160 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. Gable Manufacturing Direct Materials Budget For the Months of January through March January February Units to be produced 3,280 3,500 Multiply by: Quantity of direct materials needed per unit Quantity needed for production 13,120 14,000 Plus: Desired ending inventory of direct materials 1,400 1,352 Total quantity needed 14,520 15,352 March 3,380 Quarter 10,160 13,520 40,640 1312 1312 17738240L 53319680