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a Secure I hrtps Phomeworkld-4860561848questionld 18ushed-false&cld-5042385xcentorwin-yes; ACC 202-210 Managerial Accounting Summer 2018 Online Upton Victoria Lentz&I; 7/3/18 2:42 PM Homework: Chapter 9 Homework Save Score: 1.82 of 10 pts HW Score : 182%, 1.82 of 100 pts e%) Eg. 17A (book/static) Question Help * Riey Beverages manutactres ils own sodil pop bones The bottles ?? rnade from ightweight yet strong plastic, Rilby uses as much PET recycied tesin polats in its botties as it can, both because u PFT hops Rley to meet its sustainsbility goals and because racyoled PET es kss expensive than virgn PET Riey\'s management is analyzing whether the change to the bottile molds to reduce PET plasbc usage shodd be made Manwgement expects the tolowing number of soda bottles to be ussed n the upocomrg year Click the icon to view more nornton oaData Table Requirement 1.Using the onginal data (belore any redesign of sods bottles], prepare a drect matorals buadget to calculate the cost of Start by prepaning the direct matenaks budget through the totai quantity needed, than compiete the budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of soda pop bottios to be producesd Riley Beverages Direct Materials Budget For quarters 1 through 4 2000 000 2,600,000 2,300 000 3.100,000 For the upcoming year, management axpocts te beginring inventory ot PET to be 800 klograms, whi ending invertory is expected to be 1780 kilograms Daring the Irst three quartars of the year, managemant wants to keep the endng invendory of PET at the and at each qusrter PET noods equal to 10% of the folowng quarter\'s Quarter 1 Quarter 2 Ouarter 3 Quarter 4 Units to be produced More Into 2,000,000 2,800 000 2,300,000 3,100,000 10 000 000 0 004 8000 10,4009,20012400 40,000 760 41,760 0004 040 0040000 Multiply by. Begnning inventory of direct msterials Quantity of PET needed for production 10409201240 1 760 904011,320 Riley s contnuang to search tor ways to reduce its costs and its impact on the emvironment PET piastic is meited and biown over soda bottle molds to produce the butties One idea Rley\'s enginoars have supgested is to retrofit the Deared ending inventory Total quantity needed 10 440 160 botte mids and charge the paso turnulaban sightly so that 25% less PET Bagnning inventory of diract matenal plastic is used for each botfle. Tha average kilograms of PET per sods bottle belore any redesign s0.004 kg The cost of retroiting the soda bottle molds wi resuk in a ons tme charge of $22, 112, whle the plastc retomuiation wil cause the average cost per kilogram ot PET plassic to change trom $3.00 to $3 30 Quenity to puarchase Multply by Cost per kilogram Enter any number in the edit felds and then click Check Answer Print Done Clear All Check Answer O Type here to sea rdh

Solution

Riley Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced 2000000 2600000 2300000 3100000 10000000 PET required per soda bottle 0.004 0.004 0.004 0.004 0.004 Quantity of PET needed for production 8000 10400 9200 12400 40000 Plus: Desired ending inventory 1040 920 1240 1760 1760 Total quantity needed 9040 11320 10440 14160 41760 Less: Beginning inventory of direct materials 800 1040 920 1240 800 Quantity to purchase 8240 10280 9520 12920 40960 Cost per kilogram 3.00 3.00 3.00 3.00 3.00 Direct materials purchases $ 24720 30840 28560 38760 122880