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Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g.,

Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year.

September

250

October

200

November

230

December

380

January

100

Jani likes to have 5% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31.

Two materials are needed for each fruit basket:

Fruit

1 pound

Small gifts

6 items

The materials inventory policy is to have 5% of the next month's fruit needs on hand and 35% of the next month's production needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on August 31 met this company policy.

1)

Prepare a direct materials purchases budget for the two types of materials used in the production of gift baskets for the months of September, October, and November. (Note: Round answers to the nearest whole unit.)

Jani's Flowers and Gifts

Direct Materials Purchases Budget

For September, October, and November

Fruit:

September

October

November

Production

Pounds of fruit

Required for production

Desired ending inventory

Total needs

Less: Beginning inventory

Pounds purchased

Small gifts:

Production

Items required

Needed for production

Desired inventory

Total needs

Less: Beginning inventory

Items purchased

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