Business, 22.04.2020 21:54 minie66

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.

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Answer from: jadenriley8129

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

Answer from: Quest

answer; the above statement/question is ( true);

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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Calculator Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-na...

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