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 $70,000133,000$

February $65,000123,500$

March $80,000152,000$

April $66,000125,400$

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 $35,000$ 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:

Question Content Area

$1.$ 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 $0$a$197$c$09$bfeb$069\_1$

fill in the blank $0$a$197$c$09$bfeb$069\_2$

fill in the blank $0$a$197$c$09$bfeb$069\_3$

fill in the blank $0$a$197$c$09$bfeb$069\_4$

Desired ending inventory fill in the blank $0$a$197$c$09$bfeb$069\_5$

fill in the blank $0$a$197$c$09$bfeb$069\_6$

fill in the blank $0$a$197$c$09$bfeb$069\_7$

fill in the blank $0$a$197$c$09$bfeb$069\_8$

Total needs fill in the blank $0$a$197$c$09$bfeb$069\_9$

fill in the blank $0$a$197$c$09$bfeb$069\_10$

fill in the blank $0$a$197$c$09$bfeb$069\_11$

fill in the blank $0$a$197$c$09$bfeb$069\_12$

Less: Beginning inventory fill in the blank $0$a$197$c$09$bfeb$069\_13$

fill in the blank $0$a$197$c$09$bfeb$069\_14$

fill in the blank $0$a$197$c$09$bfeb$069\_15$

fill in the blank $0$a$197$c$09$bfeb$069\_16$

Units produced fill in the blank $0$a$197$c$09$bfeb$069\_17$

fill in the blank $0$a$197$c$09$bfeb$069\_18$

fill in the blank $0$a$197$c$09$bfeb$069\_19$

fill in the blank $0$a$197$c$09$bfeb$069\_20$

Question Content Area

$2.$ 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 fb$9$b$6$cf$4$afb$1$f$8$b$\_1$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_2$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_3$

Jar fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_4$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_5$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_6$

Jars for production fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_7$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_8$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_9$

Desired ending inventory fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_10$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_11$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_12$

Total needs fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_13$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_14$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_15$

Less: Beginning inventory fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_16$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_17$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_18$

Jars purchased fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_19$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_20$

fill in the blank fb$9$b$6$cf$4$afb$1$f$8$b$\_21$

Question Content Area

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 $30$a$1$dd$003$f$9$c$045\_1$

fill in the blank $30$a$1$dd$003$f$9$c$045\_2$

fill in the blank $30$a$1$dd$003$f$9$c$045\_3$

Ounces fill in the blank $30$a$1$dd$003$f$9$c$045\_4$

fill in the blank $30$a$1$dd$003$f$9$c$045\_5$

fill in the blank $30$a$1$dd$003$f$9$c$045\_6$

Ounces for production fill in the blank $30$a$1$dd$003$f$9$c$045\_7$

fill in the blank $30$a$1$dd$003$f$9$c$045\_8$

fill in the blank $30$a$1$dd$003$f$9$c$045\_9$

Desired ending inventory fill in the blank $30$a$1$dd$003$f$9$c$045\_10$

fill in the blank $30$a$1$dd$003$f$9$c$045\_11$

fill in the blank $30$a$1$dd$003$f$9$c$045\_12$

Total needs fill in the blank $30$a$1$dd$003$f$9$c$045\_13$

fill in the blank $30$a$1$dd$003$f$9$c$045\_14$

fill in the blank $30$a$1$dd$003$f$9$c$045\_15$

Less: Beginning inventory fill in the blank $30$a$1$dd$003$f$9$c$045\_16$

fill in the blank $30$a$1$dd$003$f$9$c$045\_17$

fill in the blank $30$a$1$dd$003$f$9$c$045\_18$

Ounces purchased fill in the blank $30$a$1$dd$003$f$9$c$045\_19$

fill in the blank $30$a$1$dd$003$f$9$c$045\_20$

fill in the blank $30$a$1$dd$003$f$9$c$045\_21$