Production Budget and Direct Materials Purchases BudgetsPeanut 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: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 $32,000$ 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$\mathrm{.}2.$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.