Osborne Manufacturing produces self-watering planters for use in upscale retail establishments

Subject:AccountingPrice: Bought3

Share With

Osborne 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: E (Click the icon to view additional information.) Inventory at the start of the year was 850 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. Osborne Manufacturing Production Budget For the Months of January through March January February March Quarter Get more help Clear all Final check months of the upcoming year show the estimated unit sales of le ? Number of planters to be sold 3,400 .. January .. February 3,800 March 3,300 4,900 April .... May 4,600 Print Done Clear all F Osborne Manufacturing produces self-watering planters for usb in upscale retail establishments. Sales E Requirement 1. Prepare a production budget for each month in the first quarter of the year, including product in units for each month and for the quarter. March Osborne Manufacturing Production Budget For the Months of January through March January February Unit sales 3,400 3,800 Plus: Desired ending inventory 950 825 Total needed 4,350 4,625 Less: Beginning inventory 850 950 Units to produce 3,500 3,675 3,300 1,225 Quarter 10,500 1,225 4,525 11,725 850 825 3,700 10,875 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. Read the fequirements Units to produce 3,500 3,675 3,700 10,875 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. March Quarter Osborne Manufacturing Direct Materials Budget For the Months of January through March I January February Units to be produced 3500 3675 Quantity of direct materials needed per 3 3 Multiply by: unit Quantity needed for production 10500 11025 Desired ending inventory of direct Plus: materials 2205 2220 Total quantity needed 12705 13245 3700 10875 3 3 11100 32625 March Quarter For the Months of January through March January February Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per pound Total cost of direct material purchases