Ex$7\mathrm{.}36$ Production budget and direct materials purchases budgets

Healthy Eating Habits Pty Ltd produces all$-$natural organic peanut butter. The peanut butter is sold in $400-$gram jars. The sales budget for the first four months of the year is as follows:

$\backslash$table$[[,$Unit Sales,Dollar Sales $($$$)],[$January$,48000,100800],[$February$,46000,96600],[$March$,55000,121000],[$April$,58000,125200]]$

Company policy requires that ending inventories for each month be $20$ per cent of next month's sales. At the beginning of January, the inventory of peanut butter is $14500$ jars.

Each jar of peanut butter needs two raw materials: $800$ grams of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be $10$ per cent of the next month's production needs. That policy was met on $1$ January.

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.

$2$ Prepare separate direct materials purchases budgets for jars and for peanuts for the months of January and February.