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 ($) January 70,000 147,000 February 55,000 115,500 March 60,000 126,000 April 58,000 121,800 Company policy requires that ending inventories for each month be 10% of next month's sales. At the beginning of January, the inventory of peanut butter is 38,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total Prepare a direct materials purchases budget for jars for the months of January and February. repare a direct materials purchases budget for peanuts for the months of January and February
Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows:
| Unit Sales | Dollar Sales ($) | |
| January | 70,000 | 147,000 |
| February | 55,000 | 115,500 |
| March | 60,000 | 126,000 |
| April | 58,000 | 121,800 |
Company policy requires that ending inventories for each month be 10% of next month's sales. At the beginning of January, the inventory of peanut butter is 38,000 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.
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
Prepare a direct materials purchases budget for jars for the months of January and February.
repare a direct materials purchases budget for peanuts for the months of January and February
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