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:

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(Click the icon to view additional information.)Inventory at the start of the year was

800

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

two

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

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Part 1

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.

Osborne Manufacturing
Production Budget
For the Months of January through March
		January	February	March	Quarter
Unit sales
Plus:	Desired ending inventory
Total needed
Less:	Beginning inventory
Units to produce

Data table January .. February .... March April.... . May Number of planters to be sold 3,200 3,000 3,500 4,300 4,600 11 Requirements 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. 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