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please solve requirement 2 and explain how you got the answers/show work pls W E9-17A (similar to) Question Help Dixson Beverages manufactures its own soda
please solve requirement 2 and explain how you got the answers/show work pls
W E9-17A (similar to) Question Help Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view the number of soda bottles.) Read the requirements. i More Info Requirement 1. Using the original data (before any redesign of soda bottles), prepare a direct materials budget to calculate the cost of PET purchases in Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Dixson is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One Idea Dixson's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 20% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.16 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $1,839,160, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $6.00 to $6.20. Quarter 3 Quarter 4 2,700,000 3,300,000 0.16 0.16 Year 11,100,000 0.16 i Data Table Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Units to be produced 2,500,000 2,600,000 Multiply by: Quantity of direct materials needed per unit 0.16 0.16 Quantity of PET needed for production 400.000 416,000 Plus: Desired ending inventory 124.800 129,600 Total quantity needed 524.800 545,600 Less: Beginning inventory of direct materials 120,000 124.800 Quantity to purchase 404,800 420,000 Print Done 528,000 432,000 158.400 1,776,000 158,900 158,900 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Number of soda pop bottles to be produced .... 2,500,000 686,900 2,600.000 2,700,000 3,300,000 590,400 129,600 1.934,900 120,000 158.400 460,800 528,500 1,814,900 For the upcoming year, management expects the beginning inventory of PET to be 120,000 kilograms, while ending inventory is expected to be 158,900 kilograms. During the first three quarters of the year, management wants to keep the ending inventory of PET at the end of each quarter equal to 30% of the following quarter's PET needs. Enter any number in the edit flelds and then click Check Answer 4 parts Clear All Print Done remaining W E9-17A (similar to) Question Help O Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its botties as it can, both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more Information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: Click the icon to view the number of soda bottles.) Read the requirements, $ 2,428,800 $2,524,800 $2,764,800 3,171,000 $10,889,400 Total cost of direct material purchases Requirement 2. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bolle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Year Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Units to be produced 2500000 2600000 0.112 0.112 Multiply by: Quantity of direct materials needed per unit Quantity of PET needed for production 280000 291200 87360 90720 Plus: Desired ending inventory Total quantity needed 367360 381920 Quarter 3 Quarter 4 2700000 3300000 0.112 0.112 302400 369600 110880 158900 11100000 0.112 1243200 158900 413280 528500 1402100 Enter any number in the edit fields and then click CheckStep by Step Solution
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