eBook Calculator Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months year is as follows: Unit Sales Dollar Sales ($) January 70,000 147,000 February 55,000 115,500 March 80,000 168,000L April 42,000 88,200 Company policy requires that ending inventories for each month be 15% of next month's sales. At the beginning of January, the inventory of peanut butter is 32,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw material for each month be 20% of the next month's production needs. That policy was met on January 1. Required: 1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarte in total Peanut Land Inc. Production Budget For the First Quarter of the Year Previous Next ^ G 3/22