materials - coffee beans and packaging. GBCoffee is preparing budgets for the fourth quarter ending December 31, 2019. For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter. The previous year's sales for the corresponding period were: October November December January February 50,000 bags 55,000 bags 90,000 bags 75,000 bags 60,000 bags 3. The final product (bags of roast coffee) require two direct materials: green coffee beans and packaging material. 1.25 pounds of green coffee beans are required for each one pound bag of roasted coffee beans. During the roasting process residual moisture, some oils, and chaff (the silver skin) are removed, which lowers the weight of the final product. Management desires to have materials on hand (i.e., green beans) at the end of each month equal to 20 percent of the following month's green coffee bean needs. The beginning materials inventory, October 2019, is expected to be 13,500 pounds. The green coffee beans cost $7.00 per pound. Packaging material is purchased by the roll and 100 coffee bags are produced from each roll. The packaging material is made from biodegradable, organic plant fiber that extends the shelf life of the coffee beans while preserving its freshness. Management desires to have packaging on hand at the end of each month equal to 10 percent of the following month's production needs. The beginning inventory of packaging (i.e.. rolls of packaging material). October 2019, is expected to be 54 rolls. Packaging is expected to cost $24 per roll. Note, budgeted production in January is required in order to complete the direct materials budget for December. Also, use the @ROUNDUP function to round up to the nearest whole number the pounds of green beans and number of rolls of packaging material to purchase. Prepare a Direct Materials budget. Also because two direct materials are required for production - green beans and rolls of packaging material - you will need a separate schedule for each direct material. 12 Sales Budget 4th Quarter 5 Sales in the Previous Year 16 Muitply by Current Year Increment (86 17 Expected in Current Year 18 Mutiply by Sales Price per Case 19 Total Sales Revenue 195,000 800% S 1950 210600 19.50 1950 $ 1950 S 19.50 S 21 Type of Sale 22 Cash Sales (35%) 23 Oedt Sales(65 %) 3500% $ 364550.00 s 405405.00 $ 663,39000 $ LAa7,34s00 $ 552a25.00 s 442.26000 65.00% $ 684,450.00 $ 752.895.00 $ 1,232,010.00$ 2665355.00 $ 1,02667500$ 821,54000 S 1,526,850.00 $ 1.15.00.00 $ 1,805,40200 410670000 S 1,57330000 $ 1,2sM0000 123201000 Total Sales Revenue Production Bugt October December 4th Quarter febuary (Partial) Unit Sales 7,200 81,000 Plus: Desired Ending inventory (10% total Needed 10.00% 8100 218200 9,120 87,480 Less Begining inventory of M (53So Number of Units Produced s150 213350
