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A. Amber, owner of Amber's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (eg.,
A. Amber, owner of Amber's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (eg., a coffee mug, dock of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Amber has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year. September 260 October 150 270 November December 350 January 170 Auber likes to have 5% of the next month's sales needs on hand are end of cach month. This requirement was met on August 31. Two materials are needed for each fruit basket Fruit 2 pounds Small Gifts items The materials inventory policy is to have 5% of the next month's fruit needs on hand and 30% of the next month's production woeds of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventary on August 21 met this company policy Prepare a production budget for September October, November, and December for gift baskets 2. Prepare a direct materials purchases budget for the two types of materials used in the production of in baskets for the montis of September October, and November
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