Smith Manufacturing produces selfwatering planters for use in upscale retail establishments. Sales projections for the rst five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: a (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 monti 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 muirements. Requirement 1. Prepare a production budget for each month in the rst quarter of the year, including production in units for each month and for the quarter. Smith Manufacturing Production Budget For the Months of January through March January February March Quarter Unit sales 3200 3000 3500 970 Plus: Desired ending inventory 750 875 1075 1075 Total need ed 3950 3875 4575 12400 Less: Beginning inventory Units to produce ;; 1 25 300 1600 Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the rst quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Smith 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: (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. . . . . . Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Smith Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced 3150 3125 3700 11600 Quantity of direct materials needed per Multiply by: unit Quantity needed for production 3150 3125 3700 11600 Desired ending inventory of direct 875 Plus: materials 740 375 Total quantity needed 3775 3865 4575 12475 Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchasesX Data table Number of planters to be sold January . . . . . . 3,200 February . . 3,000 March . . . . 3,500 April . . 4,300 May . . . . 1 4,600