Solved: Hoffman Manufacturing produces self watering

planters for use in upscale

Hoffman Manufacturing produces self watering planters for use in upscale

Hoffman Manufacturing produces self- watering planters for use in upscale retail estab-
lishments. Sales projections for the first five months of the upcoming year show the esti-mated
unit sales of the planters each month to be as follows:
Number of planters to be sold
January............................................................................... 3,000
February............................................................................. 3,200
March................................................................................. 3,100
April.................................................................................... 4,200
May..................................................................................... 4,000

Inventory at the start of the year was 750 planters. The desired inventory of planters at the end
of each month in the upcoming year 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.

Requirements
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.

Hoffman Manufacturing produces self watering planters for use in upscale

ANSWER
https://solvedquest.com/hoffman-manufacturing-produces-self-watering-planters-for-use-in-
upscale/

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