Question

Polite, Inc., bottles and distributes mineral water from the company's natural springs reusable plastic containers. northern Oregon. Polite markets two products: 12-ounce disposable plastic bottles and 1-gallon Read the requirements. Requirements Requirement 1. For 2018, Polite mark bottle and $1.40 per 1-gallor rs. Average selling prices are estimated $0.60 per 1. For 2018, Polite marketing managers project monthly sales of 450,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.60 per 12-ounce bottle and $1.40 per 1-gallon container. Prepare a revenues budget for Polite, Inc., for the year ending December 31, 2018. Revenues B For Year Ending Dec 2. Polite begins 2018 with 950,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on Units 12-oz. bottles 1-gallon containers Budgeted revenues Decemb 700 000 1 units. If the 18,what is the beginning calls for Polite to containers on January 1, 2018? inventory of 1-gall Choose from any list or enter any nu Requirement 1. For 2018, Polite marketing managers project monthly sales of 450,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.60 per 12-ounce bottle and $1.40 per 1-gallon container. Prepare a revenues budget for Polite, Inc., for the year ending December 31, 2018. Revenues Budget For Year Ending December 31,2018 Units Price Total 12-oz. bottles 1-gallon containers Budgeted revenues - ounce bottle Polite 2018 950,000 December 31, 2018, be no less than 650.000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 20s 12-ounce bottles ending inventory Production Budget (in Units) For the Year Ending December 1.2018 12 oz, bottles Budgeted sales in dollars Budgeted sales in units Total requirements Units to be produced vith 950.000 12-ounce bottles t 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottls. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 2018? Production Budget (in Units) For the Year Ending December 31,2018 12 oz. bottles Add beginning finished goods inventory Add target ending finished goods inventory Deduct beginning finished goods inventory Deduct target ending finished goods inventory entory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Polite to produce 1,700,000 1-gallon containers during 2018, an187 hat ie tha heninnina invantanı at 1-aaln ntainare An lanuanı ri s ae budgeted previously what is the minimum number of 12-ounce bottles Polde m nduce during 20 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottles. Based on Production Budget (in Units) For the Year Ending December 1,2018 12 oz, bottles Budgeted sales in dollars udgeted sales in units al requirements entory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Polite to produce 1,700,0000 1-gallon containers during 2018, no less than 650,000 bottles. Based on Requirement 2. Polite begins 2018 with 950,000 12-ounce bottles inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, sales projections budgeted previously, what is the minimum number of 12-ounce bottles Polite must produce during 2018? Production Budget (in Units) For the Year Ending December 31,2018 12 oz, bottles Add beginning finished goods inventory entory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Polite to produce 1,700,000 1-gallon containers during 2018, ry 1, 2018? Add target ending finished goods inventory Deduct beginning finished goods inventory Deduct target ending finished goods inventory 9040 Choose from any list or enter any number in the input fields and then continue the next question Requirement 2. Polite begins 2018 with 950,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-0unce bottles Polite must produce during 2018? Production Budget (in Units) For the Year Ending December 31,2018 12 oz, bottles Units to be produced 300,000 units. If the production budget calls for Polite to produce 1,700,000 1-gallon containers during 2018, Requirement 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, what is the beginn ing inventory of 1-gallon containers January 1, 2018? on January 1, 2018. The beginning inventory of 1-gallon containers, in units, is

Answer 1

Solution

1. Revenue budget:

	Units	price	Total
12-oz bottles(450000×12)	5,400,000	$0.60	$3,240,000
1-gallon containers(130000×12)	1,560,000	$1.40	$2,184,000
Budgeted revenue			$5,424,000

2. Production budget:

	12 oz bottles
Budgeted sales in units	5,400,000
Add target ending finished goods inventory	650,000
Total requirements	6,050,000
Deduct beginning finished goods inventory	950,000
Units to be produced	5,100,000

3. The beginning inventory of 1gallon containers, in units is 160,000 on January 1,2018.

Explanation:

Production budget:

	1 gallon containers
Budgeted sales in units	1,560,000
Add target ending finished goods inventory(given)	300,000
Total requirements	1,860,000
Deduct beginning finished goods inventory(430000-170000)	160,000
Units to be produced(given)	1,700,000