Kyler Manufacturing producesself-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 asfollows:

Number of planters to be sold

January

. . . .

3,600

February

. . . .

3,400

March

. . . . . . .

3,200

April

. . . . . . . .

4,800

May

. . . . . . . .

4,000

Inventory at the start of the year was 900 planters. The desired inventory of planters at the end of each month should be equal to 25% of the followingmonth's budgeted sales. Each planter requires three pounds of polypropylene(a type ofplastic). The company wants to have 20% of the polypropylene required for nextmonth's production on hand at the end of each month. The polypropylene costs $0.10 per pound.

Kyler Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the rst ve months of the upcoming year show the estimated unit sales of the planters each month to January February March Quarter Unit sales 3,600 3,400 3,200 10,200 Plus: Desired ending inventory 850 800 11200 11200 Total needed 4,450 4,200 4,400 11,400 Less: Beginning inventory 900 850 800 900 Units to produce 3,550 3,350 3,600 10,500 Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the rst 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. Kyler Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced 3550 3350 3600 10500 Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed