Production Budget and Direct Materials Purchases Budget 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 250 200 October November 230 December 380 100 January Jani likes to have 7% 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 7% 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. Required: 1. Prepare a production budget for September, October, November, and December for gift baskets. (Note: Round all answers to the nearest whole unit.) Jani's Flowers and Gifts Production Budget for Gift Baskets For September, October, November, and December December September October November 250 200 230 380 16.1 Sales Desired ending inventory Needed Less: Beginning inventory Production 202 241 2. 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 247 x 202 241 Pounds of fruit Required for 247 X 202 production Desired ending inventory Total 261 X 219 266 needs Less: Beginning 14 17 inventory Pounds purchased Small gifts: 25 Production 6 1,482 X 1,212 506 1,446 756 424 Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased 1,906 x 1,718 2,202 519 X 424 506 1,388 X 1,294 1,696