Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-natural organic peanut butter. The peanut butt is as follows: er is sold in 12-ounce jars. The sales budget for the first four months of the year January February March April Company policy requires that ending inventories for each month be 20% of next month's sales. At the beginning of January, the inventory of peanut butter is 31,000 jars. Unit Sales 80,000 75,000 50,000 66,000 Dollar Sales ($) 152,000 142,500 95,000 125,400 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 Check My Work 3 more Check My Work uses remaining Next 34 PM