Production Budget and Direct Materials Purchases Budget Jani Subramanian, owner of Jani's Flowers and Gifts, produces...

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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 October November December January 250 200 230 380 100 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 Small gifts 1 pound 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. 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 September October Line Item Description November December Sales 250 200 230 380 Desired ending inventory 10 12 19 5 Needed 260 212 249 385 Less: Beginning inventory 13 10 12 19 Production 247 202 237 V 366 Feedback Check My Work Correct 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 Line Item Description September October November Fruit: Production 247 202 237 Pounds of fruit 1 1 Required for production 247 202 237 Desired ending inventory 10 12 18 Total needs 12 X 10 X 12 X Less: Beginning inventory 245 X 204 X 243 X Pounds purchased Small gifts: Production Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased 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 October November December January 250 200 230 380 100 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 Small gifts 1 pound 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. 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 September October Line Item Description November December Sales 250 200 230 380 Desired ending inventory 10 12 19 5 Needed 260 212 249 385 Less: Beginning inventory 13 10 12 19 Production 247 202 237 V 366 Feedback Check My Work Correct 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 Line Item Description September October November Fruit: Production 247 202 237 Pounds of fruit 1 1 Required for production 247 202 237 Desired ending inventory 10 12 18 Total needs 12 X 10 X 12 X Less: Beginning inventory 245 X 204 X 243 X Pounds purchased Small gifts: Production Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased