Calculator 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 four months of the year is as follows: Unit Sales Dollar Sales ($) January 80,000 176,000 February 50,000 110,000 March 40,000 88,000 April 46,000 101,200 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 33,000 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. 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.

Explanation:

Sales budget

                      $Revenue         Unit      

January           176,000        80,000

February          110,000        50,000

March                88,000        40,000

April                   101,200       46,000

Ending inventory = 25% of next month sales

Ending inventory in December = 25% of next month sales.

Opening inventory in January = 33,000 units

January (80000-33000)+25% *50000 = 59,500 units

February = (50000 -12500) + 25%*40000 = 47,500 units

March = (40,000-10,000) +25%*46,000 = 41,500 units

April =46000-11,500= 34,500 units

                             Raw materials          Peanut            Jars

January      59,500 * 24                     1,428,000         59,500

February     47,500*24                        1,140,000         47,500

March          41,500 *24                       996,000           41,500

April             34,500 *24                        828,000          34,500

Company policy for production requires that ending inventory is 20% of next month production

                             Peanut production                                                

January  1428000 + (20%* 1140000)   =  1,656,000    

February = (1140000-228000) + (20%*996,000)  = 1,111,200

March = (996,000-199,200 ) + (20% * 828,000) =962,400

April 828,000- 165,500 = 662,400        

Total peanut production = 4,392,000

                         Jars production

January = 59500 + (20% * 47,500)= 69,000

February = (47,500-9500) + (20% * 41,500) = 46,300

March = (41,500 - 8,300) + (20% * 34,500) 40,100

April = 34,500-6900 =27600

Total = 183,000

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; offer in store wine and beer samples;