y leverages manufactures can adapop boties. The bones are made from polylene (PET) ligheight yet strong plastie Roly muc

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Y Leverages Manufactures Can Adapop Boties The Bones Are Made From Polylene Pet Ligheight Yet Strong Plastie Roly Muc 1 (22.86 KiB) Viewed 40 times

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y leverages manufactures can adapop boties. The bones are made from polylene (PET) ligheight yet strong plastie Roly much PET recycled mesin peints boties as at both because ning recycled PET hele to meet its lyg and because recycled PET anvegin PET Con to view more information) Riya management is ing whether the change to the bottlo mode to reduce PET usage should made Management expect the following number of soda bottes to be used in the coming year (click on to view lada botes) Read the Requirement 1. Uwing the enginal data below any redesign of a bol prepare a direct mature budget to calculate the cost of PET purchases in each qarw for the upcoming year and for the year in to Surt by preparing me direct materials budget through the totality needed, the complete the budget Riley Beverages Direct Materials Budget For quarters through Quarter Quarter Quarter 4 Un to be duced Mly by Beginning inte directe Quantity of PET needed for production Pus Durango Total Quart nooded Quarter 2 Yes
1. Using the original data (before any redesign of soda bottles), prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total. 2. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retrofitting the soda bottle molds. Should the company make the change? Explain your rationale.
Quarter 1 Quarter 2 Quarter 3 Quarter 4 3,100,000 Number of soda pop bottles to be produced .. 2,000,000 2,600,000 2,300,000 For the upcoming year, management expects the beginning inventory of PET to be 800 kilograms, while ending inventory is expected to be 1,760 kilograms. During the first three quarters of the year, management wants to keep the ending inventory of PET at the end of each quarter equal to 10% of the following quarter's PET needs.
More info - X ppc Riley is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Riley's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 25% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.004 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $22,112, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $3.00 to $3.30.