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	95,000
February	65,000	123,500
March	40,000	76,000
April	54,000	102,600

Company policy requires that ending inventories for each month be 10% 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 materials for each month be 20% of the next month's production needs. That policy was met on January 1.

Required:

Question Content Area

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.

	January	February	March	Total
Sales	fill in the blank 275216fb802c050_1	fill in the blank 275216fb802c050_2	fill in the blank 275216fb802c050_3	fill in the blank 275216fb802c050_4
Desired ending inventory	fill in the blank 275216fb802c050_5	fill in the blank 275216fb802c050_6	fill in the blank 275216fb802c050_7	fill in the blank 275216fb802c050_8
Total needs	fill in the blank 275216fb802c050_9	fill in the blank 275216fb802c050_10	fill in the blank 275216fb802c050_11	fill in the blank 275216fb802c050_12
Less: Beginning inventory	fill in the blank 275216fb802c050_13	fill in the blank 275216fb802c050_14	fill in the blank 275216fb802c050_15	fill in the blank 275216fb802c050_16
Units produced	fill in the blank 275216fb802c050_17	fill in the blank 275216fb802c050_18	fill in the blank 275216fb802c050_19	fill in the blank 275216fb802c050_20

Question Content Area

2. Prepare a direct materials purchases budget for jars for the months of January and February.

	January	February	Total
Production	fill in the blank 3e6f32fc6076059_1	fill in the blank 3e6f32fc6076059_2	fill in the blank 3e6f32fc6076059_3
Jar	fill in the blank 3e6f32fc6076059_4	fill in the blank 3e6f32fc6076059_5	fill in the blank 3e6f32fc6076059_6
Jars for production	fill in the blank 3e6f32fc6076059_7	fill in the blank 3e6f32fc6076059_8	fill in the blank 3e6f32fc6076059_9
Desired ending inventory	fill in the blank 3e6f32fc6076059_10	fill in the blank 3e6f32fc6076059_11	fill in the blank 3e6f32fc6076059_12
Total needs	fill in the blank 3e6f32fc6076059_13	fill in the blank 3e6f32fc6076059_14	fill in the blank 3e6f32fc6076059_15
Less: Beginning inventory	fill in the blank 3e6f32fc6076059_16	fill in the blank 3e6f32fc6076059_17	fill in the blank 3e6f32fc6076059_18
Jars purchased	fill in the blank 3e6f32fc6076059_19	fill in the blank 3e6f32fc6076059_20	fill in the blank 3e6f32fc6076059_21

Question Content Area

Prepare a direct materials purchases budget for peanuts for the months of January and February.

	January	February	Total
Production	fill in the blank ee62bbff500b040_1	fill in the blank ee62bbff500b040_2	fill in the blank ee62bbff500b040_3
Ounces	fill in the blank ee62bbff500b040_4	fill in the blank ee62bbff500b040_5	fill in the blank ee62bbff500b040_6
Ounces for production	fill in the blank ee62bbff500b040_7	fill in the blank ee62bbff500b040_8	fill in the blank ee62bbff500b040_9
Desired ending inventory	fill in the blank ee62bbff500b040_10	fill in the blank ee62bbff500b040_11	fill in the blank ee62bbff500b040_12
Total needs	fill in the blank ee62bbff500b040_13	fill in the blank ee62bbff500b040_14	fill in the blank ee62bbff500b040_15
Less: Beginning inventory	fill in the blank ee62bbff500b040_16	fill in the blank ee62bbff500b040_17	fill in the blank ee62bbff500b040_18
Ounces purchased	fill in the blank ee62bbff500b040_19	fill in the blank ee62bbff500b040_20	fill in the blank ee62bbff500b040_21