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Donaldson 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
Donaldson 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 390 planters. The desired inventory of planters at the end of each month should be equal to 10% of the following month's budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% 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. Donaldson Manufacturing Production Budget For the Months of January through March January February 3,900 3,700 Data Table March Quarter 10,700 Unit sales 3,100 Plus: Desired ending inventory Number of planters to be sold 3,900 Total needed January February 390 370 310 3,700 Less: Beginning inventory 310 March 3,100 Units to produce April 4,500 May 4,900 Print Done Enter any number in the edit fields and then click Check
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