Dalley Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dalley uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dalley to meet its sustainability goals and because recycled PET is less expensive than virgin PET. Dalley is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle moulds to produce the bottles. One idea Dalley's engineers have suggested is to retrofit the soda bottle moulds and change the plastic formulation slightly so that 25% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.012 kg. The cost of retrofitting the soda bottle moulds will result in a one-time charge of $161,592, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $5.00 to $5.30. Dalley's management is analyzing whether the change to the bottle moulds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view additional information.) Requirements Requirement 1. Using the original data (before any redesign of soda bottles), prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total. Start by preparing the direct materials budget through the total quantity needed, and then complete the budget. (Round all answers to the nearest number. For the quantity of direct materials needed per unit, enter round your answer to three decimal places X.XXX. Use parentheses or a minus sign for beginning inventory balances. Round cost per kilogram to the nearest cent.) Dalley Beverages - X Direct Materials Budget Data table For Quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced Number of soda pop bottles to be produced 3,400,000 2,400,000 2,600,000 3,300,000 x Quantity of direct materials needed per unit For the upcoming year, management expects the beginning inventory of PET to be 12,240 kilograms, while Quantity of PET needed for production ending inventory (before any redesign) is expected to be 12,400 kilograms. During the first three quarters of the year, management wants to keep the ending inventory of PET at the end of each quarter equal to 30% of the Plus: Desired ending inventory following quarter's PET needs Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase Print Done x Cost per kilogram Total cost of direct material purchases Requirement 2. Assume that the company retrofits the soda bottle moulds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenarioRequirement 2. Assume that the company retrofits the soda bottle moulds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. Start by preparing the direct materials budget through the total quantity needed, and then complete the budget. (Round all answers to the nearest number. For the quantity of direct materials needed per unit, enter round your answer to three decimal places X.XXX. Use parentheses or a minus sign for beginning inventory balances. Round cost per kilogram to the nearest cent.) Dalley Beverages - X Data table Direct Materials Budget For Quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced Number of soda pop bottles to be produced 3,400,000 2,400,000 2,600,000 3,300,000