eBook 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 of the year is as follows: Unit Sales Dollar Sales ($) January 50,000 110,000 February 65,000 143,000 March 40,000 88,000 April 54,000 118,800 Company policy requires that ending inventories for each month be 20% of next month's sales. At the beginning of January, the inventory of peanut butter is 37,000 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 materials 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 quarter in total. Peanut Land Inc. Production Budget For the First Quarter of the Year January February March Total Sales fill in the blank 3e8f1bf9ff8f077_1 fill in the blank 3e8f1bf9ff8f077_2 fill in the blank 3e8f1bf9ff8f077_3 fill in the blank 3e8f1bf9ff8f077_4 Desired ending inventory fill in the blank 3e8f1bf9ff8f077_5 fill in the blank 3e8f1bf9ff8f077_6 fill in the blank 3e8f1bf9ff8f077_7 fill in the blank 3e8f1bf9ff8f077_8 Total needs fill in the blank 3e8f1bf9ff8f077_9 fill in the blank 3e8f1bf9ff8f077_10 fill in the blank 3e8f1bf9ff8f077_11 fill in the blank 3e8f1bf9ff8f077_12 Less: Beginning inventory fill in the blank 3e8f1bf9ff8f077_13 fill in the blank 3e8f1bf9ff8f077_14 fill in the blank 3e8f1bf9ff8f077_15 fill in the blank 3e8f1bf9ff8f077_16 Units produced fill in the blank 3e8f1bf9ff8f077_17 fill in the blank 3e8f1bf9ff8f077_18 fill in the blank 3e8f1bf9ff8f077_19 fill in the blank 3e8f1bf9ff8f077_20 2. Prepare a direct materials purchases budget for jars for the months of January and February. Peanut Land Inc. Direct Materials Purchases Budget for Jars For January and February January February Total Production fill in the blank 997b3bf8cf80f8e_1 fill in the blank 997b3bf8cf80f8e_2 fill in the blank 997b3bf8cf80f8e_3 Jar fill in the blank 997b3bf8cf80f8e_4 fill in the blank 997b3bf8cf80f8e_5 fill in the blank 997b3bf8cf80f8e_6 Jars for production fill in the blank 997b3bf8cf80f8e_7 fill in the blank 997b3bf8cf80f8e_8 fill in the blank 997b3bf8cf80f8e_9 Desired ending inventory fill in the blank 997b3bf8cf80f8e_10 fill in the blank 997b3bf8cf80f8e_11 fill in the blank 997b3bf8cf80f8e_12 Total needs fill in the blank 997b3bf8cf80f8e_13 fill in the blank 997b3bf8cf80f8e_14 fill in the blank 997b3bf8cf80f8e_15 Less: Beginning inventory fill in the blank 997b3bf8cf80f8e_16 fill in the blank 997b3bf8cf80f8e_17 fill in the blank 997b3bf8cf80f8e_18 Jars purchased fill in the blank 997b3bf8cf80f8e_19 fill in the blank 997b3bf8cf80f8e_20 fill in the blank 997b3bf8cf80f8e_21 Prepare a direct materials purchases budget for peanuts for the months of January and February. Peanut Land Inc. Direct Materials Purchases Budget for Peanuts For January and February January February Total Production fill in the blank 36c386035f95fbe_1 fill in the blank 36c386035f95fbe_2 fill in the blank 36c386035f95fbe_3 Ounces fill in the blank 36c386035f95fbe_4 fill in the blank 36c386035f95fbe_5 fill in the blank 36c386035f95fbe_6 Ounces for production fill in the blank 36c386035f95fbe_7 fill in the blank 36c386035f95fbe_8 fill in the blank 36c386035f95fbe_9 Desired ending inventory fill in the blank 36c386035f95fbe_10 fill in the blank 36c386035f95fbe_11 fill in the blank 36c386035f95fbe_12 Total needs fill in the blank 36c386035f95fbe_13 fill in the blank 36c386035f95fbe_14 fill in the blank 36c386035f95fbe_15 Less: Beginning inventory fill in the blank 36c386035f95fbe_16 fill in the blank 36c386035f95fbe_17 fill in the blank 36c386035f95fbe_18 Ounces purchased fill in the blank 36c386035f95fbe_19 fill in the blank 36c386035f95fbe_20 fill in the blank 36c386035f95fbe_21

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 of the year is as follows: Unit Sales Dollar Sales ($) January 50,000 110,000 February 65,000 143,000 March 40,000 88,000 April 54,000 118,800 Company policy requires that ending inventories for each month be 20% of next month's sales. At the beginning of January, the inventory of peanut butter is 37,000 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 materials 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 quarter in total. Peanut Land Inc. Production Budget For the First Quarter of the Year January February March Total Sales Desired ending inventory Total needs Less: Beginning inventory Units produced 2. Prepare a direct materials purchases budget for jars for the months of January and February. Peanut Land Inc. Direct Materials Purchases Budget for Jars For January and February January February Total Production Jar Jars for production Desired ending inventory Total needs Less: Beginning inventory Jars purchased Prepare a direct materials purchases budget for peanuts for the months of January and February. Peanut Land Inc. Direct Materials Purchases Budget for Peanuts For January and February January February Total Production Ounces Ounces for production Desired ending inventory Total needs Less: Beginning inventory Ounces purchased