Part A

Epic Foods produces specialty soup sold in mason jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:

	Total sales revenue	Number of jars sold
1st quarter (2021)	$182,000	150,000
2nd quarter(2021)	$210,000	180,500
3rd quarter(2021)	$251,000	213,500
4th quarter(2021)	$195,000	164,500

Epic anticipates selling 223,000 jars with total sales revenue of $265,000 in the first quarter of the year (2022) following the year given in the table above. Epic has a policy that the ending inventory of jars must be 30% of the following quarters sales. Prepare a production budget for the year that shows the number of jars to be produced each quarter and the year in total.

PART B

Gable industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. Gable pays $3 for each computer chip. To help guard against stockouts of the computer chip Gable has a policy that states that the ending inventory of computer chips should be at least 20% of the following months production needs. The production schedule for the first four months of the year is as follows:

Month	Stuffed animals to be produced
January	5,700
February	4,600
March	4,300
April	4,900

Required: Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget