E9-22A (similar to) Question Help Cleary Manufacturing produces self-watering pl

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E9-22A (similar to) Question Help Cleary 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: EEB (Click the icon to view additional information.) Inventory at the start of the year was 900 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 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 $0.10 per pound. Read the requirements. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Cleary Manufacturing Direct Materials Budget For the Months of January through March 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 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 t total cost of the pol 2. January Februa ry March Quarter to be ased 3,550 3,350 3,600 10,500 Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Data Table Plus: Desired ending inventory of direct materials Number of planters to be sold Total quantity needed January February March April May 3,600 3,400 3,200 4,800 4,000 Enter any number in the edit fields and then click Check Answer Clear All remaining

Explanation / Answer

Cleary Manufacturing Production Budget For the Months of January through March January February March Quarter April Planned Sales (units) 3600 3400 3200 10200 4800 Less: Beginning Inventory 900 850 800 1200 Required Production 2700 2550 2400 7650 3600 Plus: Desired Ending Inventoy 850 800 1200 1000 (4800X25%) (4000X25%) Units to be produced 3550 3350 3600 10500 4600 Cleary Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced 3550 3350 3600 10500 Multiply by: Quantity of direct materials needed per unit 3 3 3 3 Quantity needed for production (pounds) 10650 10050 10800 31500 Plus: Desired ending inventory of direct materials 2010 2160 2760 6930 (4600X3X20%) Total Quantity Needed (Pounds) 12660 12210 13560 38430 Total cost of Polyproylene to be purchased 3843 (38430X0.1)

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