Juda Manufacturing produces self-watering planters for use in upscale retail est

Question

Juda 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 o the year was 775 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 $0.20 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 Juda Manufacturing Production Budget For the Months of January through March Requirements anuary FebruaryMarch Quarter 1. Prepare a production budget for each month in the first quarter of the year, Unit sales Plus: Desired ending inventory Total needed 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 Start by preparing the direct materials budget through the total quantity needed, then complete the budget including production in units for each month and for the quarter Prepare a diract 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 palypropylene to be purchased. 2. PrintDone ng requ e to be purchased. Juda Manufacturing Direct Materials Budget For the Months of January through March 1 Data Table January February March Quarter Units to be produced Multiply by Quantity of direct materials needed per unit Quantity needed for production Plus: Total quantity needed Less: Quantity to purchase Multiply by Cost per pound Total cost of direct material purchases Number of planters to be sold January February March April May 3,100 3,200 3,000 4,200 4,400 Desired ending inventory of direct materials Beginning inventory of direct materials Print Done

Explanation / Answer

Prepare production budget :

b) Direct material purchase budget :

January February March Quarter Unit sold 3100 3200 3000 9300 Add: Desired ending inventory 800 750 1050 1050 Total needs 3900 3950 4050 10350 Less: Beginning inventory (775) (800) (750) (775) Unit to be produce 3125 3150 3300 9575

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.