Beckett 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 840 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. - X Requirements Beckett Manufacturing Production Budget For the Months of January through March 1. Prepare a production budget for each month in the first quarter of the year, January February March Quarter 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 Unit sales first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Plus: Desired ending inventory Total needed Print Done Less: Beginning inventory Units to produce 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 Beckett Manufacturing - X i Data Table Direct Materials Budget For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3.200 Multiply by: Quantity of direct materials needed per unit February 3.600 Quantity needed for production March 3.100 Plus Desired ending inventory of direct materials April 4,500 Total quantity needed May 4,700 Less: Beginning inventory of direct materials Quantity to purchase Print Done Multiply by: Cost per pound Total cost of direct material purchases January Beckett 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. March Quarter Beckett Manufacturing Production Budget For the Months of January through March January February Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce 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. i Data Table March Quarter Beckett Manufacturing Direct Materials Budget For the Months of January through March January February Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per pound January ..... February .... Number of planters to be sold 3,200 3,600 3,100 4,500 4.700 March April ... May Print Done Total cost of direct material purchases
