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.

September250October200November230December380January100

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:

Fruit1 poundSmall gifts6 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:

1.make 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 GiftsProduction Budget for Gift BasketsFor September, October, November, and DecemberSeptemberOctoberNovemberDecemberSalesfill in the blank 9c27fe078fb2fc3_1

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fill in the blank 9c27fe078fb2fc3_4

Desired ending inventoryfill in the blank 9c27fe078fb2fc3_5

fill in the blank 9c27fe078fb2fc3_6

fill in the blank 9c27fe078fb2fc3_7

fill in the blank 9c27fe078fb2fc3_8

Neededfill in the blank 9c27fe078fb2fc3_9

fill in the blank 9c27fe078fb2fc3_10

fill in the blank 9c27fe078fb2fc3_11

fill in the blank 9c27fe078fb2fc3_12

Less: Beginning inventoryfill in the blank 9c27fe078fb2fc3_13

fill in the blank 9c27fe078fb2fc3_14

fill in the blank 9c27fe078fb2fc3_15

fill in the blank 9c27fe078fb2fc3_16

Productionfill in the blank 9c27fe078fb2fc3_17

fill in the blank 9c27fe078fb2fc3_18

fill in the blank 9c27fe078fb2fc3_19

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2. make 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 GiftsDirect Materials Purchases BudgetFor September, October, and NovemberFruit:SeptemberOctoberNovemberProductionfill in the blank 25e71703707603e_1

fill in the blank 25e71703707603e_2

fill in the blank 25e71703707603e_3

Pounds of fruitfill in the blank 25e71703707603e_4

fill in the blank 25e71703707603e_5

fill in the blank 25e71703707603e_6

Required for productionfill in the blank 25e71703707603e_7

fill in the blank 25e71703707603e_8

fill in the blank 25e71703707603e_9

Desired ending inventoryfill in the blank 25e71703707603e_10

fill in the blank 25e71703707603e_11

fill in the blank 25e71703707603e_12

Total needsfill in the blank 25e71703707603e_13

fill in the blank 25e71703707603e_14

fill in the blank 25e71703707603e_15

Less: Beginning inventoryfill in the blank 25e71703707603e_16

fill in the blank 25e71703707603e_17

fill in the blank 25e71703707603e_18

Pounds purchasedfill in the blank 25e71703707603e_19

fill in the blank 25e71703707603e_20

fill in the blank 25e71703707603e_21

Small gifts:Productionfill in the blank 25e71703707603e_22

fill in the blank 25e71703707603e_23

fill in the blank 25e71703707603e_24

Items requiredfill in the blank 25e71703707603e_25

fill in the blank 25e71703707603e_26

fill in the blank 25e71703707603e_27

Needed for productionfill in the blank 25e71703707603e_28

fill in the blank 25e71703707603e_29

fill in the blank 25e71703707603e_30

Desired inventoryfill in the blank 25e71703707603e_31

fill in the blank 25e71703707603e_32

fill in the blank 25e71703707603e_33

Total needsfill in the blank 25e71703707603e_34

fill in the blank 25e71703707603e_35

fill in the blank 25e71703707603e_36

Less: Beginning inventoryfill in the blank 25e71703707603e_37

fill in the blank 25e71703707603e_38

fill in the blank 25e71703707603e_39

Items purchasedfill in the blank 25e71703707603e_40

fill in the blank 25e71703707603e_41

fill in the blank 25e71703707603e_42

3.Why do you think there is such a big difference in budgeted units from November to December? Why did Jani budget fewer units in January than in December?

1. December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions.
2. December is the last month of the year so Jani has too budget all the balance units in her Annual budget to meet her targets.
3. None of the above.