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 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 250 200 230 380 Desired ending inventory 10 12 19 Needed 212 249 Less: Beginning inventory 10 12 5 260 385 13 19 247 202 237 366 Production 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 October November Production 247 202 237 1 1 Pounds of fruit Required for production Desired ending inventory 247 237 202 12 10 18 Total needs 257 255 214 10 12 Less: Beginning inventory 12 245 204 243 Pounds purchased Small gifts: Production 247 202 237 Items required 6 6 Needed for production 1,482 1,422 Desired inventory Total needs X Less: Beginning inventory Items purchased