Gable Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the
Gable 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 640 planters. The desired inventory of planters at the end of each month should be equal to 20% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 10% 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. Unit sales Gable Manufacturing Production Budget For the Months of January through March Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Requirements - January February March Quarter 3,200 3,600 3,100 9,900 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. Enter any number in the edit fields and then click Check Answer. 2 parts remaining 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Print Done i Data Table - Number of planters to be sold January February 3,200 3,600 March 3,100 April 4,500 Activate Windows Go to Settings to activate W May 4,700 Clear All heck Answer
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To create the production and direct materials budgets we will proceed stepbystep for January February and March Step 1 Calculate the Production Budget ...See step-by-step solutions with expert insights and AI powered tools for academic success
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