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Pets Plus, Inc. produces otic fluid for dogs. The otic fluid is sold in 12-ounce plastic bottles. The sales budget for the first four

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Pets Plus, Inc. produces otic fluid for dogs. The otic fluid is sold in 12-ounce plastic bottles. The sales budget for the first four months of the year is as follows: Unit Sales 70,000 January February March April 85,000 60,000 66,000 Company policy requires that ending inventories for each month be 20% of next month's sales. At the beginning of January, the inventory of otic fluid is 38,000 bottles Each bottle of otic fluid needs two raw materials; eight ounces of a mox of salicylic acid and water and one plastic bottle. Company policy requires that ending inventories of raw matenals for each month be 20% of the next month's production needs. That policy was met on January 1 1. Prepare a production budget for the first quarter of the year. Show the number of bottles that should be produced each month as well as for the quarter in total Pets Plus, Inc. Production Budget For the First Quarter of the Year Line Item Description January February March Total Sales Desired ending inventory Total needs Less: Beginning inventory Units produced 2. Prepare a direct materials purchases budget for bottles for the months of January and February. Round all calculations to the nearest whole number. Pet Plus, Inc. Direct Materials Purchases Budget for Bottles For January and February Line Item Description January February Total Production Bottles Bottles for production Desired ending inventory Total needs Less: Beginning inventory Bottles purchased Prepare a direct materials purchases budget for salicylic acid and water mixture for the months of January and February. Round all calculations to the nearest whole number. Pet Plus, Inc. Direct Materials Purchases Budget for Fluid mixture For January and February Line Item Description January February Total Production Ounces Ounces for production Desired ending inventory Total needs Less: Beginning inventory Ounces purchased

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