Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 Production Jar Jars for production 55,500 X 55,500 X 555,000 X 38,750 X 38,750 X 38,750 X Total

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 Production Jar Jars for production 55,500 X 55,500 X 555,000 X 38,750 X 38,750 X 38,750 X Total

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

Please do not give solution in image format thanku 

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 Production Jar Jars for production Desired ending inventory Total needs Less: Beginning inventory Jars purchased 55.500 X 55,500 X Production Ounces Ounces for production Desired ending inventory Total needs Less: Beginning inventory Ounces purchased 555,000 X 13,875 X 69,375 X 64,375 X 55.500 X 1.332.000 X 266,400 X 5,000 X 1.598.400 X 480.000 X 1.118,400 X 38.750 X 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 930.000 X 186.000 X 1.116.000 X 266.400 X 38,750 X 38,750 X 849,600 X 38,750 X 9.375 X 48,125 X 13,875 X 34,250 X Total Total 98.625 X 1.968,000 X
Transcribed Image Text: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 Production Jar Jars for production Desired ending inventory Total needs Less: Beginning inventory Jars purchased 55.500 X 55,500 X Production Ounces Ounces for production Desired ending inventory Total needs Less: Beginning inventory Ounces purchased 555,000 X 13,875 X 69,375 X 64,375 X 55.500 X 1.332.000 X 266,400 X 5,000 X 1.598.400 X 480.000 X 1.118,400 X 38.750 X 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 930.000 X 186.000 X 1.116.000 X 266.400 X 38,750 X 38,750 X 849,600 X 38,750 X 9.375 X 48,125 X 13,875 X 34,250 X Total Total 98.625 X 1.968,000 X
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 ($) 70,000 147,000 45,000 94,500 40,000 84,000 46,000 96,600 Company policy requires that ending inventories for each month be 25% of next month's sales. At the beginning of January, the inventory of peanut butter is 32,000 jars. January February March April Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1. Required: 1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total. Peanut Land Inc. Production Budget For the First Quarter of the Year January February March 70,000 ✓ 11,250 ✔ 45,000 ✓ 40,000 10,000 ✓ 11,500 Sales Desired ending inventory Total needs Less: Beginning inventory Units produced 81,250 55,000 ✓ 32,000 ✓ 11,250 ✓ 49,250 51,500 10,000 ✓ Total 155,000 11,500 166,500 32,000 43,750 ✓ 41,500 ✓ 134,500
Transcribed Image Text:Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows: Unit Sales Dollar Sales ($) 70,000 147,000 45,000 94,500 40,000 84,000 46,000 96,600 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. January February March April 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 For the First Quarter of the Year January February March 70,000 ✓ 11,250 ✔ 45,000 ✓ 40,000 10,000 ✓ 11,500 Sales Desired ending inventory Total needs Less: Beginning inventory Units produced 81,250 55,000 ✓ 32,000 ✓ 11,250 ✓ 49,250 51,500 10,000 ✓ Total 155,000 11,500 166,500 32,000 43,750 ✓ 41,500 ✓ 134,500
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS