December 25,000 Ch21 Case Study Assignment - Part 2 Problem One: Paradise, Inc. makes and sells coffee cup tumblers. Each coffee cup tumbler uses 1/4 pound of plastic. Budgeted production of coffee cup tumblers in units for the next three months is as follows: October November Budgeted production (tumblers in units) 15,000 20,000 The company wants to maintain monthly ending inventories of plastic equal to 20% of the following month's budgeted production needs. The cost of plastic is $3.00 per pound Instructions: Prepare a direct materials purchases budget for the month of November. October November Units to be produced Times: Direct materials per unit Total pounds needed for production Add: Desired ending direct materials (lbs) Total materials required Less: Beginning direct materials (lbs) Direct materials purchases Times: Cost per pound Total cost of direct materials purchases December 2022 Problem Two: Paradise, Inc. has budgeted the following unit sales: 2021 Quarter Units 1 75,000 100,000 115,000 125,000 Quarter 1 Units 70,000 2 3 4 The finished goods inventory on hand on December 31, 2020 was 15,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 15% of the next quarter's anticipated sales. Instructions: Prepare a production budget for 2022. Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total Expected unit sales Add: Desired ending finished goods units Total required finished goods units Less: Beginning finished goods units Required production units 2. Instructions for Posting (200 to 300 words - 60pts): a. You are in charge of setting the budget for your company which has two different departments. You can create your own company or base your example on your company you work for or base your example on another company that you are familiar with. Identify and explain the two different departments in your example for your company. For each department, plan your budget with a goal that is recurring on a weekly basis. b. Explain how your two departments in your company will coordinate their individual goals to meet the the overall objectives (goals) of the company as a whole. c. Explain how management and employees will be motivated throughout the two departments to meet the planned objectives (goals) for each department and for the company as a whole. * Upload and attach your completed excel file to your posting