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 EEB (Click the icon to view additional information.) 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 three 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 Requirement 1. 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 Smith Manufacturing Production Budget Data Table For the Months of January through March February March Quarter January Unit sales Number of planters to be sold Plus: Desired ending inventory January 3,600 Total needed February 3,400 Less: Beginning inventory 3,200 March Units to produce ril 4,800 Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter required and the total cost of the polypropylene to be purchased May 4,000 Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Print Done Smith Manufacturing Smith Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production PlusDesired ending inventory of direct materials Total quantity needed Beginning inventory of direct materials Less: Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases