Pets Plus, Inc. produces otic fluid for dogs. The otic fluid is sold in 12-ounce plastic bottles. The sales budget for the first 4 months of the year is as follows:

Month	Unit Sales
January	8,000
February	9,500
March	12,000
April	13,900

Company policy requires that ending inventories for each month be 15% of next month's sales. At the beginning of January, the inventory of otic fluid is 900 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 10% of the next month's production needs. That policy was met on January 1.

Required:

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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.

Line Item Description	January	February	March	Total
Sales	Sales	Sales	Sales	Sales
Desired ending inventory	Desired ending inventory	Desired ending inventory	Desired ending inventory	Desired ending inventory
Total needs	Total needs	Total needs	Total needs	Total needs
Less: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory
Units produced	Units produced	Units produced	Units produced	Units produced

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