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.

$\backslash$table$[[$September$,250],[$October$,200],[$November$,230],[$December$,380],[$January$,100]]$

Jani likes to have $6\%$ 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 $6\%$ 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:

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