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Anderson Manufacturing produces self - watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show
Anderson Manufacturing produces selfwatering 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: Inventory at the start of the year was planters. The desired inventory of planters at the end of each month should be equal to of the following month's budgeted sales. Each planter requires four pounds of polypropylene a type of plastic The company wants to have of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $ per pound. Requirement 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. Requirement 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.
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