CHAPTER 6 - Master Budget 6-26 Revenues and production budget. Price, Inc. bottles and distributes mineral water from the company's natural springs in northern Oregon. Price markets two products 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers Required: 1. For 2015. Price marketing managers project monthly sales of 420,000 12-ounce bottles and 170.000 1-gallon containers. Average selling prices are estimated at $0.20 per 12-ounce bottle and $150 per 1-gallon container. Prepare a revenues budget for Price, Inc., for the year ending December 31. 2015. 2. Price begins 2015 with 890,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2015, be no less than 680.000 botles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Price must produce during 2015? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2015.be 240,000 units. If the production budget calls for Price to produce 1.900,000 1-gallon containers during 2015, what is the beginning inventory of 1-gallon containers on January 1, 20152 Revenues and production budget. Selling Price Units Sold Total Revenues 12-ounce bottles 1-gallon units 2 Direct Materials in pounds Budgeted unit sales (12-ounce bottles) Add target ending finished goods inventory Total requirements Deduct beginning finished goods inventory Units to be produced 3. Beginning inventory Budgeted sales Target Budgeted ending inventory production