Production Budget and Direct Materials Purchases Budgets

Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows:

	Unit Sales	Dollar Sales ($)
January	40,000	80,000
February	75,000	150,000
March	80,000	160,000
April	54,000	108,000

Company policy requires that ending inventories for each month be 25% of next month's sales. At the beginning of January, the inventory of peanut butter is 31,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1.

Required:

1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total.

Peanut Land Inc.
Production Budget
For the First Quarter of the Year
	January	February	March	Total
Sales	fill in the blank d4d16506701d05e_1	fill in the blank d4d16506701d05e_2	fill in the blank d4d16506701d05e_3	fill in the blank d4d16506701d05e_4
Desired ending inventory	fill in the blank d4d16506701d05e_5	fill in the blank d4d16506701d05e_6	fill in the blank d4d16506701d05e_7	fill in the blank d4d16506701d05e_8
Total needs	fill in the blank d4d16506701d05e_9	fill in the blank d4d16506701d05e_10	fill in the blank d4d16506701d05e_11	fill in the blank d4d16506701d05e_12
Less: Beginning inventory	fill in the blank d4d16506701d05e_13	fill in the blank d4d16506701d05e_14	fill in the blank d4d16506701d05e_15	fill in the blank d4d16506701d05e_16
Units produced	fill in the blank d4d16506701d05e_17	fill in the blank d4d16506701d05e_18	fill in the blank d4d16506701d05e_19	fill in the blank d4d16506701d05e_20

2. Prepare a direct materials purchases budget for jars for the months of January and February.

Peanut Land Inc.
Direct Materials Purchases Budget for Jars
For January and February
	January	February	Total
Production	fill in the blank b80c13048026f8e_1	fill in the blank b80c13048026f8e_2	fill in the blank b80c13048026f8e_3
Jar	fill in the blank b80c13048026f8e_4	fill in the blank b80c13048026f8e_5	fill in the blank b80c13048026f8e_6
Jars for production	fill in the blank b80c13048026f8e_7	fill in the blank b80c13048026f8e_8	fill in the blank b80c13048026f8e_9
Desired ending inventory	fill in the blank b80c13048026f8e_10	fill in the blank b80c13048026f8e_11	fill in the blank b80c13048026f8e_12
Total needs	fill in the blank b80c13048026f8e_13	fill in the blank b80c13048026f8e_14	fill in the blank b80c13048026f8e_15
Less: Beginning inventory	fill in the blank b80c13048026f8e_16	fill in the blank b80c13048026f8e_17	fill in the blank b80c13048026f8e_18
Jars purchased	fill in the blank b80c13048026f8e_19	fill in the blank b80c13048026f8e_20	fill in the blank b80c13048026f8e_21

Prepare a direct materials purchases budget for peanuts for the months of January and February.

Peanut Land Inc.
Direct Materials Purchases Budget for Peanuts
For January and February
	January	February	Total
Production	fill in the blank 255229097010030_1	fill in the blank 255229097010030_2	fill in the blank 255229097010030_3
Ounces	fill in the blank 255229097010030_4	fill in the blank 255229097010030_5	fill in the blank 255229097010030_6
Ounces for production	fill in the blank 255229097010030_7	fill in the blank 255229097010030_8	fill in the blank 255229097010030_9
Desired ending inventory	fill in the blank 255229097010030_10	fill in the blank 255229097010030_11	fill in the blank 255229097010030_12
Total needs	fill in the blank 255229097010030_13	fill in the blank 255229097010030_14	fill in the blank 255229097010030_15
Less: Beginning inventory	fill in the blank 255229097010030_16	fill in the blank 255229097010030_17	fill in the blank 255229097010030_18
Ounces purchased	fill in the blank 255229097010030_19	fill in the blank 255229097010030_20	fill in the blank 255229097010030_21