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 4 months of the year is as foliows: \begin{tabular}{lcc} & Unit Sales & Dollar Sales (\$) \\ \hline January & 36,000 & 108,000 \\ February & 38,000 & 114,000 \\ March & 41,000 & 123,000 \\ April & 43,000 & 129,000 \end{tabular} 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 9 , 300 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar set (a glass jar and lid), Company policy requires that ending inventories of raw materials for each month be 10% 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. Prepare a direct materials purchases budget for jars for the months of January and February. Prepare a direct materials purchases budget for peanuts for the months of January and February