E6-26

Polite, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Polite markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.

Requirements

1.	For Requirements 1. For 2018, Polite marketing managers project monthly sales of 430, 000 12-ounce bottles and 150, 000 1-gallon containers. Average selling prices are estimated at $ 0.75 per 12-ounce bottle and $ 1.75 per 1-gallon container. Prepare a revenues budget for Polite, Inc., for the year ending December 31, 2018. 2. Polite begins 2018 with 960, 000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 650, 000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 220,000 units. If the production budget calls for Polite to produce 1 comma 600,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018? 2018, Polite marketing managers project monthly sales of 430,000 12-ounce bottles and 150,000 1-gallon containers. Average selling prices are estimated at $0.75 per 12-ounce bottle and $1.75 per 1-gallon container. Prepare a revenues budget for Polite, Inc., for the year ending December 31, 2018.
2.	PolitE begins 2018 with 960,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 2018?
3.	The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 220,000 units. If the production budget calls for Polite to produce 1,600,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?

Requirement 1. For 2018, Polite marketing managers project monthly sales of 430, 000 12-ounce bottles and 150, 000 1-gallon containers. Average selling prices are estimated at $ 0.75 per 12-ounce bottle and $ 1.75 per 1-gallon container. Prepare a revenues budget for Polite, Inc., for the year ending December 31, 2018.

Revenues Budget
For Year Ending December 31,2018
	Units	Price	Total
12-oz. bottles
1-gallon containers
Budgeted revenues