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Johnson Manufacturing produces self-watering planters for use in upscale real establishments. Sales projections for the first five months of the upcoming year show the estimated

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Johnson Manufacturing produces self-watering planters for use in upscale real 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 390 planters. The desired inventory of planters at the end of each month should be equal to 10% 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 $0.25 per pound Read the requirements for the first five self-watering he planters el nal informatid Data Table vas 390 plante uires three po e end of each Juld be equal to 1 ve 20% of the p Number of planters to be sold ruction budget f January ...... February ..... March. ....... April ..... 3,900 3,700 3,100 4,500 4,900 h units for each n Johnso Prod May .. For the Months Print Done fields and then 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. Johnson Manufacturing Production Budget For the Months of January through March January February March Quarter January February March Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Less: Beginning inventory Units to produce Requirement 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 Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Johnson 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 Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase 11 Multiply by: Cost per pound Total cost of direct material purchases

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