Question 5, E15-17A (si... HW Score: 3.2%, 0.48 of 15 points = Homework: Chapter 15 Warm-Up Activity and Try It! Q... Save Part 1 of 7 O Points: 0 of 3 More info bint yet strong plastic. The company uses as much PET recycled resin pellets in its bottles as it can both irgi - X Decker is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is Requirements melted and blown over soda bottle molds to produce the bottles. One idea Decker's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 25% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.004 kg. The cost 1. Using the original data (before any redesign of soda bottles), prepare a direct of retrofitting the soda bottle molds will result in a one-time charge of $11,444, while the plastic reformulation materials budget to calculate the cost of PET purchases in each quarter for the will cause the average cost per kilogram of PET plastic to change from $2.00 to $2.30. lo upcoming year and for the year in total Decker's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should 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 bottle. Now be made. Management expects the following number of soda bottles to be used in the upcoming year: prepare a direct materials budget to calculate the cost of PET purchases in each Quarter 1 quarter for the upcoming year and for the year in total for this possible scenario. Quarter 2 Quarter 3 Quarter 4 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Number of bottles to be produced 3,200,000 2.000.000 2,500,000 2,900,000 Requirement 2 (making change to using less PET). What is the direct material cost savings from making the change to using less PET? Compare the total of For the upcoming year, management expects the beginning inventory of PET to be 1,280 kilograms, while those savings to the cost of retrofitting the soda bottle molds. Should the ending inventory is expected to be 1,700 kilograms. During the first three quarters of the year, management company make the change? Explain your rationale. wants to keep the ending inventory of PET at the end of each quarter equal to 10% of the following quarter's PET needs. Print Done Print Done Decker Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. The company uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps the company to meet its sustainability goals and because recycled PET is less expensive than virgin PET. Click the icon to view additional information.) Read the requirements CE 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 each quarter for the upcoming year and for the year in total. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Decker Beverages Direct Materials Budget For quarters 1 through 4 Quarter Quarter 2 Quarter 3 Quarter 4 Year Units to be produced * Quantity of direct materials needed per unit Quantity of PET needed for production Plus: Desired ending inventory Total quantity needed
