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of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorfu Bard gift basket for the rest of the year and for January of next year.

of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorfu Bard gift basket for the rest of the year and for January of next year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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) Production Budget and Direct Materials Purchases Budget 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 October November December January Required: Sales Jani likes to have 5% 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: 1 pound 6 items Desired ending inventory Needed Less: Beginning inventory Fruit Small gifts The materials inventory policy is to have 5% of the next month's fruit needs on hand and 40% 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. Production 250 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 200 Fruit: Live Production 230 Pounds of fruit Required for production Desired ending inventory 380 Total needs Less: Beginning inventory Pounds purchased Small gifts: Production 100 Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased 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 September October November December September October November
Transcribed Image Text:) Production Budget and Direct Materials Purchases Budget 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 October November December January Required: Sales Jani likes to have 5% 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: 1 pound 6 items Desired ending inventory Needed Less: Beginning inventory Fruit Small gifts The materials inventory policy is to have 5% of the next month's fruit needs on hand and 40% 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. Production 250 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 200 Fruit: Live Production 230 Pounds of fruit Required for production Desired ending inventory 380 Total needs Less: Beginning inventory Pounds purchased Small gifts: Production 100 Items required Needed for production Desired inventory Total needs Less: Beginning inventory Items purchased 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 September October November December September October November
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