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 80,000 January February March 85,000 April 70,000 58,000 Company policy requires that ending inventories for each month be 10% of next month's sales. At the beginning of January, the Inventory of otic fluid is 32,000 bottles. Each bottle of otic fluid needs two raw materials: eight ounces of a mix of salicylic acid and water and one plastic bottle. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1. Required: Download Excel spreadsheet 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 30,000 85,000 70,000 235,000 Desired ending inventory 8,300 7,000 5.800 3,300 Total needs 300 $2,000 75,300 340,00 Less: Beginning inventory 12.000 8.500 7,000 33,000 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 56,500 83,500 140,000 Bottles 1 1 Bottles for production 56,500 83,500 140,000 Desired ending inventory 16,700 13,760 13,760 Total needs 67,300 97,260 153,760 Less: Beginning inventory 16,700 13,760 Bottles purchased 113,960 167,520 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 A 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