Question 3 Hai Co Sd ounce jars.The sales budget for the first four months n Bhd

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Question 3 Hai Co Sd ounce jars.The sales budget for the first four months n Bhd produces all natural organic peanut butter. The peanut butter is sold in 12- of the year is as follows: Unit sales ending :15% January February March April 50,000 55,000 60,000 58,000 Company policy requires that ending inventories for each month be 65% of next month's)ales At the beginning of January, the inventory of peanut butter is 36,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanu and one jar Company policy requires that ending inventories of raw materials for each month be 20% óf the next month's production needs. Direct material inventory on hand at the beginning of January is 4450 for jars and 106,800 ounces for the peanuts. ant avch a) Prepare a production budget for the first quarter of the year. Show the number of cans that should be produced each month as well as the quarter in total. b) Prepare separate direct materials purchases budgets for jars and for peanuts for the month of anuary and February.

Explanation / Answer

(a)

(b)  

Jan Feb Mar Apr Opening Stock 36,000 8250 9000 8700 (+) Production 22250 55750 59700 49300 (-) Sold 50,000 55,000 60,000 58,000 Closing Stock 8250 9000 8700 0

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