50.1K

Verified Solution

Link Copied!

Rouse 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 750 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 $0.20 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. Data Table Rouse Manufacturing Production Budget For the Months of January through March January February Unit sales 3,000 3200 800 775 Plus: Desired ending inventory Total needed 3,800 3.975 March Quarter 9,300 3.100 1,050 1.050 January February March 4,150 10,350 Number of planters to be sold 3,000 3.200 3.100 4.200 4,000 Less: Beginning inventory April Units to produce May Print Done Requirements 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 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 Print Done Enter any number in the edit fields and then click Check

Answer & Explanation Solved by verified expert

See Answer