1. The final product (bags of roast coffee) require two direct materials: green coffee beans and packaging material. 1.25 pounds of green coffee beans are required for each one pound bag of roasted coffee beans. During the roasting process residual moisture, some oils, and chaff (the silver skin) are removed, which lowers the weight of the final product. Management desires to have materials on hand (i.e., green beans) at the end of each month equal to 20 percent of the following month's green coffee bean needs. The beginning materials inventory, October 2019, is expected to be 13,500 pounds. The green coffee beans cost $7.00 per pound.

Packaging material is purchased by the roll and 100 coffee bags are produced from each roll. The packaging material is made from biodegradable, organic plant fiber that extends the shelf life of the coffee beans while preserving its freshness. Management desires to have packaging on hand at the end of each month equal to 10 percent of the following month's production needs. The beginning inventory of packaging (i.e., rolls of packaging material), October 2019, is expected to be 54 rolls. Packaging is expected to cost $24 per roll. Use the @ROUNDUP function to round up to the nearest whole number the pounds of green beans and number of rolls of packaging material to purchase. Prepare a Direct Materials budget

Sales Budget Assumptions Unit Sales Price Percentage of Cash Sale Percentage of Credit sale Expected sales increase 65.00 50% 50% 5% 2015/16 Sales October November December January February Quarter 0,000 bookcases 10,000 bookcases 15,000 bookcases 17,000 bookcases 20,000 bookcases Production Budget Assumptions Direct Materials Budget Assumptions