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ID: A 5. Crosson Wincries& Bottling is preparing its budget for 2010 and has completed the sales budget for the first six months of the

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ID: A 5. Crosson Wincries& Bottling is preparing its budget for 2010 and has completed the sales budget for the first six months of the year. The projected volume is as follows: January February March April May June 50,000 bottles 60,000 bottles 100,000 bottles 80,000 bottles 40,000 bottles 20,000 bottles The desired ending inventory for cach month must be equal to 30 percent of the next month's sales. The December 31, 2009, inventory was 15,000 bottles. a. Prepare the production budget for the first four months of 2010. b. Assume cach finished bottle requires 25 ounces of wine and that the ending inventory each month must be equal to 20 percent of the next month's production nceds. The December 31, 2009, inventory of wine was 265,000 ounces. Prepare the direct materials purchases budget for the first three months of 2010

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