1. 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
   October	200
   November	230
   December	380
   January	100

   Jani likes to have 8% 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 8% of the next month's fruit needs on hand and 30% 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	November	December
   Sales	fill in the blank 263030fe2061064_1	fill in the blank 263030fe2061064_2	fill in the blank 263030fe2061064_3	fill in the blank 263030fe2061064_4
   Desired ending inventory	fill in the blank 263030fe2061064_5	fill in the blank 263030fe2061064_6	fill in the blank 263030fe2061064_7	fill in the blank 263030fe2061064_8
   Needed	fill in the blank 263030fe2061064_9	fill in the blank 263030fe2061064_10	fill in the blank 263030fe2061064_11	fill in the blank 263030fe2061064_12
   Less: Beginning inventory	fill in the blank 263030fe2061064_13	fill in the blank 263030fe2061064_14	fill in the blank 263030fe2061064_15	fill in the blank 263030fe2061064_16
   Production	fill in the blank 263030fe2061064_17	fill in the blank 263030fe2061064_18	fill in the blank 263030fe2061064_19	fill in the blank 263030fe2061064_20

   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	fill in the blank 8f8000ff5076f8d_1	fill in the blank 8f8000ff5076f8d_2	fill in the blank 8f8000ff5076f8d_3
   Pounds of fruit	fill in the blank 8f8000ff5076f8d_4	fill in the blank 8f8000ff5076f8d_5	fill in the blank 8f8000ff5076f8d_6
   Required for production	fill in the blank 8f8000ff5076f8d_7	fill in the blank 8f8000ff5076f8d_8	fill in the blank 8f8000ff5076f8d_9
   Desired ending inventory	fill in the blank 8f8000ff5076f8d_10	fill in the blank 8f8000ff5076f8d_11	fill in the blank 8f8000ff5076f8d_12
   Total needs	fill in the blank 8f8000ff5076f8d_13	fill in the blank 8f8000ff5076f8d_14	fill in the blank 8f8000ff5076f8d_15
   Less: Beginning inventory	fill in the blank 8f8000ff5076f8d_16	fill in the blank 8f8000ff5076f8d_17	fill in the blank 8f8000ff5076f8d_18
   Pounds purchased	fill in the blank 8f8000ff5076f8d_19	fill in the blank 8f8000ff5076f8d_20	fill in the blank 8f8000ff5076f8d_21
   Small gifts:
   Production	fill in the blank 8f8000ff5076f8d_22	fill in the blank 8f8000ff5076f8d_23	fill in the blank 8f8000ff5076f8d_24
   Items required	fill in the blank 8f8000ff5076f8d_25	fill in the blank 8f8000ff5076f8d_26	fill in the blank 8f8000ff5076f8d_27
   Needed for production	fill in the blank 8f8000ff5076f8d_28	fill in the blank 8f8000ff5076f8d_29	fill in the blank 8f8000ff5076f8d_30
   Desired inventory	fill in the blank 8f8000ff5076f8d_31	fill in the blank 8f8000ff5076f8d_32	fill in the blank 8f8000ff5076f8d_33
   Total needs	fill in the blank 8f8000ff5076f8d_34	fill in the blank 8f8000ff5076f8d_35	fill in the blank 8f8000ff5076f8d_36
   Less: Beginning inventory	fill in the blank 8f8000ff5076f8d_37	fill in the blank 8f8000ff5076f8d_38	fill in the blank 8f8000ff5076f8d_39
   Items purchased	fill in the blank 8f8000ff5076f8d_40	fill in the blank 8f8000ff5076f8d_41	fill in the blank 8f8000ff5076f8d_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.

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