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Ponte, Inc., bottles and distributes mineral water from thecompany's natural springs in northern Oregon. Ponte...

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Accounting

Ponte, Inc., bottles and distributes mineral water from thecompany's natural springs in northern Oregon. Ponte markets twoproducts: 12-ounce disposable plastic bottles and1-gallon reusable plastic containers.

1.

For 2021, Ponte marketing managers project monthly sales of 480,000 12-ounce bottles and 110,000 1-gallon containers. Average selling prices are estimated at $0.50 per12-ounce bottle and $1.60 per1-gallon container. Make a revenues budget for Ponte, Inc., for the year ending December31, 2021.

2.

Ponte begins 2021 with 960,000 12-ounce bottles in inventory. The vice president of operations requests that12-ounce bottles ending inventory on December31, 2021, be no less than 630,000 bottles. Based on sales projections as budgetedpreviously, what is the minimum number of12-ounce bottles Ponte must produce during 2021?

3.

The VP of operations requests that ending inventory of1-gallon containers on December31, 2021, be 250,000 units. If the production budget calls for Ponte to produce 1,500,000 1-gallon containers during 2021, what is the beginning inventory of1-gallon containers on January1, 2021?

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