CHAPTER 9 Profit Planning
E 9-36
1.
January February March Total
Sales…………………………………… … 48,000 46,000 55,000 149,000
Desired ending inventory………… … 9,200 11,000 29,800 29,800
Total needs…………………………… … 57,200 57,000 84,800 178,800
Less: Beginning inventory………… … 14,500 9,200 11,000 14,500
Units produced……………………… … 42,700 47,800 73,800 164,300
2.
Jars: January February Total
Production…………………………………………… … 42,700 47,800 90,500
× 1 jar…………….…………………………………… … 111
Jars for production………………………………… … 42,700 47,800 90,500
Desired inventory…………………………………… … 4,780 7,380 7,380
Total needs…………………………………………… … 47,480 55,180 97,880
Less: Beginning inventory………………………… … 4,270 4,780 4,270
Jars purchased……………………………………… … 43,210 50,400 93,610
Peanuts:
Production…………………………………………… … 42,700 47,800 90,500
× 24 ounces...………………………………………… … 24 24 24
Ounces for production……………………………… … 1,024,800 1,147,200 2,172,000
Desired inventory…………………………………… … 114,720 177,120 177,120
Total needs…………………………………………… … 1,139,520 1,324,320 2,349,120
Less: Beginning inventory………………………… … 102,480 114,720 102,480
Ounces purchased………………………………… … 1,037,040 1,209,600 2,246,640
Direct Materials Purchases Budget
For January and February
Peanut-Fresh Inc.
Production Budget
For the First Quarter of the Year
Peanut-Fresh Inc.
9-12
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