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Beckett 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 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 four 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 Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit February 3,500 Quantity needed for production 13,700 13,600 14,100 41,400 March........ 3,100 Plus: Desired ending inventory of direct materials 2,720 2,820 3,720 3,720 April..... 4,800 Total quantity needed 16,420 16,420 17,820 45,120 May 4,200 Less: Beginning inventory of direct materials 2720 2720 2820 2720 Quantity to purchase 13020 13700 15000 41720 0.10 $ 0.10 $ 0.10 $ 0.10 Multiply by: Cost per pound Print Done 1302 1292 1472 4172 Total cost of direct material purchases

Beckett 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 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 four 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 Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit February 3,500 Quantity needed for production 13,700 13,600 14,100 41,400 March........ 3,100 Plus: Desired ending inventory of direct materials 2,720 2,820 3,720 3,720 April..... 4,800 Total quantity needed 16,420 16,420 17,820 45,120 May 4,200 Less: Beginning inventory of direct materials 2720 2720 2820 2720 Quantity to purchase 13020 13700 15000 41720 0.10 $ 0.10 $ 0.10 $ 0.10 Multiply by: Cost per pound Print Done 1302 1292 1472 4172 Total cost of direct material purchases

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 17E: Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes...
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Beckett 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 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 four 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. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500 13,700 13,600 14,100 41,400 Plus: Desired ending inventory of direct materials 2,720 2,820 3,720 3,720 March..... April.. 3,100 4,800 Total quantity needed 16,420 16,420 17,820 45,120 May 4,200 2720 Less: Beginning inventory of direct materials 2720 2820 2720 Quantity to purchase 13020 13700 15000 41720 0.10 S 0.10 $ Multiply by: Cost per pound 0.10 $ 0.10 Print Done 1302 1292 1472 4172 Total cost of direct material purchases
Transcribed Image Text:Beckett 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 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 four 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. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500 13,700 13,600 14,100 41,400 Plus: Desired ending inventory of direct materials 2,720 2,820 3,720 3,720 March..... April.. 3,100 4,800 Total quantity needed 16,420 16,420 17,820 45,120 May 4,200 2720 Less: Beginning inventory of direct materials 2720 2820 2720 Quantity to purchase 13020 13700 15000 41720 0.10 S 0.10 $ Multiply by: Cost per pound 0.10 $ 0.10 Print Done 1302 1292 1472 4172 Total cost of direct material purchases
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