Decker Beverages manufactures its own soda pop bottles. The bottles are made from

polyethylene terephthalate $($PET$),$ a lightweight yet strong plastic. Decker uses as much PET

recycled resin pellets in its bottles as it can, both because using recycled PET helps Decker to

meet its sustainability goals and because recycled PET is less expensive than virgin PET.

$($i$)($Click the icon to view more information.$)$

Decker's management is analyzing whether the change to the bottle molds 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 the number of soda bottles.$)$

Read the requirements.

the year in total.

Start by preparing the direct materials budget through the total quantity needed, then complete the budget.

Decker Beverages

Direct Materials Budget

For quarters $1$ through $4$

Units to be produced

Multiply by: Quantity of direct materials needed per unit

Quantity of PET needed for production

Plus: Desired ending inventory

Total quantity needed

More info

Data table

Decker 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 Decker's engineers have suggested is to retrofit the

soda bottle molds and change the plastic formulation slightly so that $15\%$ less PET

plastic is used for each bottle. The average kilograms of PET per soda bottle

before any redesign is $0\mathrm{.}02kg.$ The cost of retrofitting the soda bottle molds will

result in a one$-$time charge of $$66,072,$ while the plastic reformulation will cause

the average cost per kilogram of PET plastic to change from $$3\mathrm{.}00$ to $$3\mathrm{.}20.$