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 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 1 pound Small gifts 6 items The materials inventory policy is to have 5 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 082508fe6019fb4 1 fill in the blank 082508fe6019fb4 2 fill in the blank 082508fe6019fb4 3 fill in the blank 082508fe6019fb4 4 Desired ending inventory fill in the blank 082508fe6019fb4 5 fill in the blank 082508fe6019fb4 6 fill in the blank 082508fe6019fb4 7 fill in the blank 082508fe6019fb4 8 Needed fill in the blank 082508fe6019fb4 9 fill in the blank 082508fe6019fb4 10 fill in the blank 082508fe6019fb4 11 fill in the blank 082508fe6019fb4 12 Less Beginning inventory fill in the blank 082508fe6019fb4 13 fill in the blank 082508fe6019fb4 14 fill in the blank 082508fe6019fb4 15 fill in the blank 082508fe6019fb4 16 Production fill in the blank 082508fe6019fb4 17 fill in the blank 082508fe6019fb4 18 fill in the blank 082508fe6019fb4 19 fill in the blank 082508fe6019fb4 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 cf762a019fe8ff5 1 fill in the blank cf762a019fe8ff5 2 fill in the blank cf762a019fe8ff5 3 Pounds of fruit fill in the blank cf762a019fe8ff5 4 fill in the blank cf762a019fe8ff5 5 fill in the blank cf762a019fe8ff5 6 Required for production fill in the blank cf762a019fe8ff5 7 fill in the blank cf762a019fe8ff5 8 fill in the blank cf762a019fe8ff5 9 Desired ending inventory fill in the blank cf762a019fe8ff5 10 fill in the blank cf762a019fe8ff5 11 fill in the blank cf762a019fe8ff5 12 Total needs fill in the blank cf762a019fe8ff5 13 fill in the blank cf762a019fe8ff5 14 fill in the blank cf762a019fe8ff5 15 Less Beginning inventory fill in the blank cf762a019fe8ff5 16 fill in the blank cf762a019fe8ff5 17 fill in the blank cf762a019fe8ff5 18 Pounds purchased fill in the blank cf762a019fe8ff5 19 fill in the blank cf762a019fe8ff5 20 fill in the blank cf762a019fe8ff5 21 Small gifts Production fill in the blank cf762a019fe8ff5 22 fill in the blank cf762a019fe8ff5 23 fill in the blank cf762a019fe8ff5 24 Items required fill in the blank cf762a019fe8ff5 25 fill in the blank cf762a019fe8ff5 26 fill in the blank cf762a019fe8ff5 27 Needed for production fill in the blank cf762a019fe8ff5 28 fill in the blank cf762a019fe8ff5 29 fill in the blank cf762a019fe8ff5 30 Desired inventory fill in the blank cf762a019fe8ff5 31 fill in the blank cf762a019fe8ff5 32 fill in the blank cf762a019fe8ff5 33 Total needs fill in the blank cf762a019fe8ff5 34 fill in the blank cf762a019fe8ff5 35 fill in the blank cf762a019fe8ff5 36 Less Beginning inventory fill in the blank cf762a019fe8ff5 37 fill in the blank cf762a019fe8ff5 38 fill in the blank cf762a019fe8ff5 39 Items purchased fill in the blank cf762a019fe8ff5 40 fill in the blank cf762a019fe8ff5 41 fill in the blank cf762a019fe8ff5 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 December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions 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 None of the above 123

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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

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 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	1 pound
Small gifts	6 items

The materials inventory policy is to have 5% 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 082508fe6019fb4_1	fill in the blank 082508fe6019fb4_2	fill in the blank 082508fe6019fb4_3	fill in the blank 082508fe6019fb4_4
Desired ending inventory	fill in the blank 082508fe6019fb4_5	fill in the blank 082508fe6019fb4_6	fill in the blank 082508fe6019fb4_7	fill in the blank 082508fe6019fb4_8
Needed	fill in the blank 082508fe6019fb4_9	fill in the blank 082508fe6019fb4_10	fill in the blank 082508fe6019fb4_11	fill in the blank 082508fe6019fb4_12
Less: Beginning inventory	fill in the blank 082508fe6019fb4_13	fill in the blank 082508fe6019fb4_14	fill in the blank 082508fe6019fb4_15	fill in the blank 082508fe6019fb4_16
Production	fill in the blank 082508fe6019fb4_17	fill in the blank 082508fe6019fb4_18	fill in the blank 082508fe6019fb4_19	fill in the blank 082508fe6019fb4_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 cf762a019fe8ff5_1	fill in the blank cf762a019fe8ff5_2	fill in the blank cf762a019fe8ff5_3
Pounds of fruit	fill in the blank cf762a019fe8ff5_4	fill in the blank cf762a019fe8ff5_5	fill in the blank cf762a019fe8ff5_6
Required for production	fill in the blank cf762a019fe8ff5_7	fill in the blank cf762a019fe8ff5_8	fill in the blank cf762a019fe8ff5_9
Desired ending inventory	fill in the blank cf762a019fe8ff5_10	fill in the blank cf762a019fe8ff5_11	fill in the blank cf762a019fe8ff5_12
Total needs	fill in the blank cf762a019fe8ff5_13	fill in the blank cf762a019fe8ff5_14	fill in the blank cf762a019fe8ff5_15
Less: Beginning inventory	fill in the blank cf762a019fe8ff5_16	fill in the blank cf762a019fe8ff5_17	fill in the blank cf762a019fe8ff5_18
Pounds purchased	fill in the blank cf762a019fe8ff5_19	fill in the blank cf762a019fe8ff5_20	fill in the blank cf762a019fe8ff5_21
Small gifts:
Production	fill in the blank cf762a019fe8ff5_22	fill in the blank cf762a019fe8ff5_23	fill in the blank cf762a019fe8ff5_24
Items required	fill in the blank cf762a019fe8ff5_25	fill in the blank cf762a019fe8ff5_26	fill in the blank cf762a019fe8ff5_27
Needed for production	fill in the blank cf762a019fe8ff5_28	fill in the blank cf762a019fe8ff5_29	fill in the blank cf762a019fe8ff5_30
Desired inventory	fill in the blank cf762a019fe8ff5_31	fill in the blank cf762a019fe8ff5_32	fill in the blank cf762a019fe8ff5_33
Total needs	fill in the blank cf762a019fe8ff5_34	fill in the blank cf762a019fe8ff5_35	fill in the blank cf762a019fe8ff5_36
Less: Beginning inventory	fill in the blank cf762a019fe8ff5_37	fill in the blank cf762a019fe8ff5_38	fill in the blank cf762a019fe8ff5_39
Items purchased	fill in the blank cf762a019fe8ff5_40	fill in the blank cf762a019fe8ff5_41	fill in the blank cf762a019fe8ff5_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?

December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions.
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.
None of the above.

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