Question

Kyler 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: LOADING...​(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 requirementsLOADING.... 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.

Number of planters to be sold

January. . . . . .

3,000

February. . . . .

3,200

March. . . . . . . .

3,100

April. . . . . . . . .

4,200

May. . . . . . . . .

4,000

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.

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.

Kyler Manufacturing
Direct Materials Budget
For the Months of January through March
		January	February	March	Quarter
Units to be produced		3,050	3,175	3,375	9,600
Multiply by:	Quantity of direct materials needed per unit	2	2	2	2
Quantity needed for production		6,100	6,350	6,750	19,200
Plus:	Desired ending inventory of direct materials	1,270	1,350	1,660	1,660
Total quantity needed		7,370	7,700	8,410	20,860

Less:	Beginning inventory of direct materials
Quantity to purchase
Multiply by:	Cost per pound
Total cost of direct material purchases

Enter any number in the edit fields and then click Check Answer.

Answer 1

Production Budget
	January	February	March	Quarter	April
Sales units	3000	3200	3100	9300	4200
Add : Closing Stock Required	800	775	1050	1050	1000
Total Goods Required	3800	3975	4150	10350	5200
Less : Opening Stock	750	800	775	750	1050
Production Required	3050	3175	3375	9600	4150

Direct Material Budget
	January	February	March	Quarter	April
Production Required	3050	3175	3375	9600	4150
Raw Material Per unit	2	2	2		2
Raw Material for Production	6100	6350	6750	19200	8300
Add : Closing Stock Required	1270	1350	1660	1660
Total Material Required	7370	7700	8410	20860
Less : Opening Stock	1220	1270	1350	1220
Material to be purchased	6150	6430	7060	19640
Rate per pound	$                 0.20	$                 0.20	$                 0.20
Purchase Cost	$               1,230	$               1,286	$               1,412	$               3,928