data table:

requirements:

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Data table For the upcoming year, management expects the beginning inventory of PET to be 9,000 kilograms, while ending inventory is expected to be 10,430 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 20% of the following quarter's PET needs. Requirements 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. 2. Assume that the company retrofits the soda bottle molds 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. 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retrofitting the soda bottle molds. Should the company make the change? Explain your rationale. More info Devon 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 molds to produce the bottles. One idea Devon's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 20% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.015kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $42,974, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $2.00 to $2.20. Devon Beverages manuasctures its own soda pop bottios. The bottles are made trom Deven's management is anabraing whether the change to the boele molds to roduce PET polyethylene tarephthalate (PET), a lighheoght yet itong plasbic. Deyon uses as much PET clastic usage thould be made. Managemect expects the following number of recyded resin pelleta in its boties as it can, both becauss using recyeled PET helps Devon to voda bottes to be used in the upooming year meet its sustainablity goals and because recycled PET is less expensive than viggin PET (Click the icon 10 view the number of soda bolties) (i) (Click the icon to viow moee information) Read the feguirements Requirement 1. Using the original data (besore any redesign of boda bottles), prepare a drect mabecials budgen to calculate the cost of PET purchasos in each quartor for ine upooming year and for the your in tolal. Start by preparing the drect materas budget through the total quansty needed, then complete the budget