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 4 months of the year is as follows: Unit Sales Dollar Sales ($) January 36,000 108,000 February 38,000 114,000 March 41,000 123,000 April 43,000 129,000 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 9,300 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar set (a glass jar and lid). Company policy requires that ending inventories of raw materials for each month be 10% 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 Total Sales fill in the blank f117240cc06606f_1 fill in the blank f117240cc06606f_2 fill in the blank f117240cc06606f_3 fill in the blank f117240cc06606f_4 Desired ending inventory fill in the blank f117240cc06606f_5 fill in the blank f117240cc06606f_6 fill in the blank f117240cc06606f_7 fill in the blank f117240cc06606f_8 Total needs fill in the blank f117240cc06606f_9 fill in the blank f117240cc06606f_10 fill in the blank f117240cc06606f_11 fill in the blank f117240cc06606f_12 Less: Beginning inventory fill in the blank f117240cc06606f_13 fill in the blank f117240cc06606f_14 fill in the blank f117240cc06606f_15 fill in the blank f117240cc06606f_16 Units produced fill in the blank f117240cc06606f_17 fill in the blank f117240cc06606f_18 fill in the blank f117240cc06606f_19 fill in the blank f117240cc06606f_20 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 Total Production fill in the blank 7d7abbf7e066fc3_1 fill in the blank 7d7abbf7e066fc3_2 fill in the blank 7d7abbf7e066fc3_3 Number of Jars fill in the blank 7d7abbf7e066fc3_4 fill in the blank 7d7abbf7e066fc3_5 fill in the blank 7d7abbf7e066fc3_6 Jars for production fill in the blank 7d7abbf7e066fc3_7 fill in the blank 7d7abbf7e066fc3_8 fill in the blank 7d7abbf7e066fc3_9 Desired ending inventory fill in the blank 7d7abbf7e066fc3_10 fill in the blank 7d7abbf7e066fc3_11 fill in the blank 7d7abbf7e066fc3_12 Total needs fill in the blank 7d7abbf7e066fc3_13 fill in the blank 7d7abbf7e066fc3_14 fill in the blank 7d7abbf7e066fc3_15 Less: Beginning inventory fill in the blank 7d7abbf7e066fc3_16 fill in the blank 7d7abbf7e066fc3_17 fill in the blank 7d7abbf7e066fc3_18 Jars purchased fill in the blank 7d7abbf7e066fc3_19 fill in the blank 7d7abbf7e066fc3_20 fill in the blank 7d7abbf7e066fc3_21 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 Total Production fill in the blank a9476dff6f82fc7_1 fill in the blank a9476dff6f82fc7_2 fill in the blank a9476dff6f82fc7_3 Ounces fill in the blank a9476dff6f82fc7_4 fill in the blank a9476dff6f82fc7_5 fill in the blank a9476dff6f82fc7_6 Ounces for production fill in the blank a9476dff6f82fc7_7 fill in the blank a9476dff6f82fc7_8 fill in the blank a9476dff6f82fc7_9 Desired ending inventory fill in the blank a9476dff6f82fc7_10 fill in the blank a9476dff6f82fc7_11 fill in the blank a9476dff6f82fc7_12 Total needs fill in the blank a9476dff6f82fc7_13 fill in the blank a9476dff6f82fc7_14 fill in the blank a9476dff6f82fc7_15 Less: Beginning inventory fill in the blank a9476dff6f82fc7_16 fill in the blank a9476dff6f82fc7_17 fill in the blank a9476dff6f82fc7_18 Ounces purchased fill in the blank a9476dff6f82fc7_19 fill in the blank a9476dff6f82fc7_20 fill in the blank a9476dff6f82fc7_21

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 4 months of the year is as follows: Unit Sales Dollar Sales ($) January 36,000 108,000 February 38,000 114,000 March 41,000 123,000 April 43,000 129,000 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 9,300 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar set (a glass jar and lid). Company policy requires that ending inventories of raw materials for each month be 10% 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 Total Sales fill in the blank f117240cc06606f_1 fill in the blank f117240cc06606f_2 fill in the blank f117240cc06606f_3 fill in the blank f117240cc06606f_4 Desired ending inventory fill in the blank f117240cc06606f_5 fill in the blank f117240cc06606f_6 fill in the blank f117240cc06606f_7 fill in the blank f117240cc06606f_8 Total needs fill in the blank f117240cc06606f_9 fill in the blank f117240cc06606f_10 fill in the blank f117240cc06606f_11 fill in the blank f117240cc06606f_12 Less: Beginning inventory fill in the blank f117240cc06606f_13 fill in the blank f117240cc06606f_14 fill in the blank f117240cc06606f_15 fill in the blank f117240cc06606f_16 Units produced fill in the blank f117240cc06606f_17 fill in the blank f117240cc06606f_18 fill in the blank f117240cc06606f_19 fill in the blank f117240cc06606f_20 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 Total Production fill in the blank 7d7abbf7e066fc3_1 fill in the blank 7d7abbf7e066fc3_2 fill in the blank 7d7abbf7e066fc3_3 Number of Jars fill in the blank 7d7abbf7e066fc3_4 fill in the blank 7d7abbf7e066fc3_5 fill in the blank 7d7abbf7e066fc3_6 Jars for production fill in the blank 7d7abbf7e066fc3_7 fill in the blank 7d7abbf7e066fc3_8 fill in the blank 7d7abbf7e066fc3_9 Desired ending inventory fill in the blank 7d7abbf7e066fc3_10 fill in the blank 7d7abbf7e066fc3_11 fill in the blank 7d7abbf7e066fc3_12 Total needs fill in the blank 7d7abbf7e066fc3_13 fill in the blank 7d7abbf7e066fc3_14 fill in the blank 7d7abbf7e066fc3_15 Less: Beginning inventory fill in the blank 7d7abbf7e066fc3_16 fill in the blank 7d7abbf7e066fc3_17 fill in the blank 7d7abbf7e066fc3_18 Jars purchased fill in the blank 7d7abbf7e066fc3_19 fill in the blank 7d7abbf7e066fc3_20 fill in the blank 7d7abbf7e066fc3_21 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 Total Production fill in the blank a9476dff6f82fc7_1 fill in the blank a9476dff6f82fc7_2 fill in the blank a9476dff6f82fc7_3 Ounces fill in the blank a9476dff6f82fc7_4 fill in the blank a9476dff6f82fc7_5 fill in the blank a9476dff6f82fc7_6 Ounces for production fill in the blank a9476dff6f82fc7_7 fill in the blank a9476dff6f82fc7_8 fill in the blank a9476dff6f82fc7_9 Desired ending inventory fill in the blank a9476dff6f82fc7_10 fill in the blank a9476dff6f82fc7_11 fill in the blank a9476dff6f82fc7_12 Total needs fill in the blank a9476dff6f82fc7_13 fill in the blank a9476dff6f82fc7_14 fill in the blank a9476dff6f82fc7_15 Less: Beginning inventory fill in the blank a9476dff6f82fc7_16 fill in the blank a9476dff6f82fc7_17 fill in the blank a9476dff6f82fc7_18 Ounces purchased fill in the blank a9476dff6f82fc7_19 fill in the blank a9476dff6f82fc7_20 fill in the blank a9476dff6f82fc7_21

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

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 4 months of the year is as follows:

	Unit Sales	Dollar Sales ($)
January	36,000		108,000
February	38,000		114,000
March	41,000		123,000
April	43,000		129,000

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 9,300 jars.

Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar set (a glass jar and lid). Company policy requires that ending inventories of raw materials for each month be 10% 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	Total
Sales	fill in the blank f117240cc06606f_1	fill in the blank f117240cc06606f_2	fill in the blank f117240cc06606f_3	fill in the blank f117240cc06606f_4
Desired ending inventory	fill in the blank f117240cc06606f_5	fill in the blank f117240cc06606f_6	fill in the blank f117240cc06606f_7	fill in the blank f117240cc06606f_8
Total needs	fill in the blank f117240cc06606f_9	fill in the blank f117240cc06606f_10	fill in the blank f117240cc06606f_11	fill in the blank f117240cc06606f_12
Less: Beginning inventory	fill in the blank f117240cc06606f_13	fill in the blank f117240cc06606f_14	fill in the blank f117240cc06606f_15	fill in the blank f117240cc06606f_16
Units produced	fill in the blank f117240cc06606f_17	fill in the blank f117240cc06606f_18	fill in the blank f117240cc06606f_19	fill in the blank f117240cc06606f_20

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	Total
Production	fill in the blank 7d7abbf7e066fc3_1	fill in the blank 7d7abbf7e066fc3_2	fill in the blank 7d7abbf7e066fc3_3
Number of Jars	fill in the blank 7d7abbf7e066fc3_4	fill in the blank 7d7abbf7e066fc3_5	fill in the blank 7d7abbf7e066fc3_6
Jars for production	fill in the blank 7d7abbf7e066fc3_7	fill in the blank 7d7abbf7e066fc3_8	fill in the blank 7d7abbf7e066fc3_9
Desired ending inventory	fill in the blank 7d7abbf7e066fc3_10	fill in the blank 7d7abbf7e066fc3_11	fill in the blank 7d7abbf7e066fc3_12
Total needs	fill in the blank 7d7abbf7e066fc3_13	fill in the blank 7d7abbf7e066fc3_14	fill in the blank 7d7abbf7e066fc3_15
Less: Beginning inventory	fill in the blank 7d7abbf7e066fc3_16	fill in the blank 7d7abbf7e066fc3_17	fill in the blank 7d7abbf7e066fc3_18
Jars purchased	fill in the blank 7d7abbf7e066fc3_19	fill in the blank 7d7abbf7e066fc3_20	fill in the blank 7d7abbf7e066fc3_21

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	Total
Production	fill in the blank a9476dff6f82fc7_1	fill in the blank a9476dff6f82fc7_2	fill in the blank a9476dff6f82fc7_3
Ounces	fill in the blank a9476dff6f82fc7_4	fill in the blank a9476dff6f82fc7_5	fill in the blank a9476dff6f82fc7_6
Ounces for production	fill in the blank a9476dff6f82fc7_7	fill in the blank a9476dff6f82fc7_8	fill in the blank a9476dff6f82fc7_9
Desired ending inventory	fill in the blank a9476dff6f82fc7_10	fill in the blank a9476dff6f82fc7_11	fill in the blank a9476dff6f82fc7_12
Total needs	fill in the blank a9476dff6f82fc7_13	fill in the blank a9476dff6f82fc7_14	fill in the blank a9476dff6f82fc7_15
Less: Beginning inventory	fill in the blank a9476dff6f82fc7_16	fill in the blank a9476dff6f82fc7_17	fill in the blank a9476dff6f82fc7_18
Ounces purchased	fill in the blank a9476dff6f82fc7_19	fill in the blank a9476dff6f82fc7_20	fill in the blank a9476dff6f82fc7_21

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

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.