3. Why do you think there is such a big difference in budgeted units from November to December? Why did Jani budget fewer units in January than in December? December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions. December is the last month of the year so Jani has too budget all the balance units in her Annual budget to meet her targets. None of the above. Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year. September 250 October 200 November 230 December 380 January 100 Jani likes to have 9% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31. Two materials are needed for each fruit basket: Fruit 1 pound Small gifts 6 items The materials inventory policy is to have 9% of the next month's fruit needs on hand and 35% of the next month's production needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on August 31 met this company policy. Required: 1. Prepare a production budget for September, October, November, and December for gift baskets. (Note: Round all answers to the nearest whole unit.) Jani's Flowers and Gifts Production Budget for Gift Baskets For September, October, November, and December September October November December Sales 250 200 230 380 Desired ending inventory Needed Less: Beginning inventory Production Feedback 2. Prepare a direct materials purchases budget for the two types of materials used in the production of gift baskets for the months of September, October, and November. (Note: Round answers to the nearest whole unit.) Jani's Flowers and Gifts Direct Materials Purchases Budget For September, October, and November Fruit: September October November Production Pounds of fruit 1 1 1 Required for production Desired ending inventory Total needs Less: Beginning inventory Pounds purchased Small gifts: Production Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased

3. Why do you think there is such a big difference in budgeted units from November to December? Why did Jani budget fewer units in January than in December? December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions. December is the last month of the year so Jani has too budget all the balance units in her Annual budget to meet her targets. None of the above. Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year. September 250 October 200 November 230 December 380 January 100 Jani likes to have 9% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31. Two materials are needed for each fruit basket: Fruit 1 pound Small gifts 6 items The materials inventory policy is to have 9% of the next month's fruit needs on hand and 35% of the next month's production needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on August 31 met this company policy. Required: 1. Prepare a production budget for September, October, November, and December for gift baskets. (Note: Round all answers to the nearest whole unit.) Jani's Flowers and Gifts Production Budget for Gift Baskets For September, October, November, and December September October November December Sales 250 200 230 380 Desired ending inventory Needed Less: Beginning inventory Production Feedback 2. Prepare a direct materials purchases budget for the two types of materials used in the production of gift baskets for the months of September, October, and November. (Note: Round answers to the nearest whole unit.) Jani's Flowers and Gifts Direct Materials Purchases Budget For September, October, and November Fruit: September October November Production Pounds of fruit 1 1 1 Required for production Desired ending inventory Total needs Less: Beginning inventory Pounds purchased Small gifts: Production Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

3. Why do you think there is such a big difference in budgeted units from November to December? Why did Jani budget fewer units in January than in December?

December includes the holiday season and is a time when many gifts are given, January is a month of fewer gift giving occasions.
December is the last month of the year so Jani has too budget all the balance units in her Annual budget to meet her targets.

None of the above.

Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year.

September	250
October	200
November	230
December	380
January	100

Jani likes to have 9% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31.

Two materials are needed for each fruit basket:

Fruit	1 pound
Small gifts	6 items

The materials inventory policy is to have 9% of the next month's fruit needs on hand and 35% of the next month's production needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on August 31 met this company policy.

Required:

1. Prepare a production budget for September, October, November, and December for gift baskets. (Note: Round all answers to the nearest whole unit.)

Jani's Flowers and Gifts
Production Budget for Gift Baskets
For September, October, November, and December
	September	October	November	December
Sales	250	200	230	380
Desired ending inventory
Needed
Less: Beginning inventory
Production

Feedback

2. Prepare a direct materials purchases budget for the two types of materials used in the production of gift baskets for the months of September, October, and November. (Note: Round answers to the nearest whole unit.)

Jani's Flowers and Gifts
Direct Materials Purchases Budget
For September, October, and November
Fruit:	September	October	November
Production
Pounds of fruit	1	1	1
Required for production
Desired ending inventory
Total needs
Less: Beginning inventory
Pounds purchased
Small gifts:
Production
Items required
Needed for production
Desired inventory
Total needs
Less: Beginning inventory
Items purchased

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.