Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four 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 $0.10 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. Anderson Manufacturing Production Budget For the Months of January through March January February March Quarter Unit sales 3,400 3,500 3,100 10,000 875 775 1,200 1,200 Plus: Desired ending inventory Total needed 4,275 4,275 4,300 11,200 Less: Beginning inventory 850 875 775 850 3,425 3,400 3,525 10,350 Units to produce Requirement 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. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Anderson Manufacturing Data table - X Direct Materials Budget For the Months of January through March January Number of planters to be sold February March Quarter Units to be produced January February 3,400 3,500 Multiply by: Quantity of direct materials needed per unit Quantity needed for production March 3,100 April...... 4,800 Plus: Desired ending inventory of direct materials May 4,200 Total quantity needed Print Done