Fenzel Slide Oil produces a lubricant, SlickTone, which is used on trombone slides. Information about the budget for the year 2015 is as follows:

1. The company expects to sell 7,100 bottles of SlickTone in the first quarter, 6,000 in the second quarter, 10,200 in the third quarter, and 8,400 in the fourth quarter.

2. A bottle of SlickTone requires 6 ounces of Chemical A and 3.5 ounces of Chemical B.

3. For the first, second, and third quarters of 2015, the desired ending inventory of finished goods is equal to 9 percent of next quarters sales, whereas the desired ending inventory for material is 14 percent of next quarters production requirements.

4. There are 1,700 bottles of SlickTone, 4,700 ounces of Chemical A, and 1,800 ounces of Chemical B on hand at the beginning of the first quarter.

5. At the end of the fourth quarter, the company must have 1,000 bottles of SlickTone, 7,300 ounces of Chemical A, and 4,800 ounces of Chemical B to meet its needs in the first quarter of 2016.

6. The cost of Chemical A is $1.10 per ounce, the cost of Chemical B is $0.11 per ounce, and the selling price of SlickTone is $14 per bottle.

7. The cost of direct labor is $0.40 per bottle, and the cost of variable overhead is $0.70 per bottle. Fixed manufacturing overhead is $3,500 per quarter.

8. Variable selling and administrative expense is 2 percent of sales and fixed selling and administrative expense is $3,000 per quarter.

(a) Prepare a production budget for each quarter of 2015. Fenzel Slide Oil Production Budget for 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Year : :