Production Budget and Direct Materials Purchases Budgets Peanut-Fresh 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 48,000 46,000 55,000 58,000 Dollar Sales ($) 100,800 96,600 121,000 125,200 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 14,500 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 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 Peanut-Fresh Inc. Production Budget For the First Quarter of the Year anuary February March Total Sales Desired ending inventory Total needs Less: Beginning inventory Units produced 2. Prepare a direct materials purchases budget for jars for the months of January and February. Do not include a multiplication symbol as part of your answer. Peanut-Fresh Inc. Direct Materials Purchases Budget for Jars For January and February January February Total Production Jar Jars for production Desired ending inventory Total needs Less: Beginning inventory Jars purchased Feedback Prepare a direct materials purchases budget for peanuts for the months of January and February. Do not include a multiplication symbol as part of your answer. Peanut-Fresh Inc. Direct Materials Purchases Budget for Peanuts For January and February anuary February Total Production Ounces Ounces for production Desired ending inventory Total needs Less: Beginning inventory Ounces purchased