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.

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 following month's budgeted sales. Each planter requires

two

pounds of polypropylene (a type of plastic). The company wants to have

10%

of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.

Number of planters to be sold

January. . . . . .

3,600

February. . . . .

3,300

March. . . . . . . .

3,100

April. . . . . . . . .

4,700

May. . . . . . . . .

4,900

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.