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:

Month Unit Sales

January $80,000$

February $50,000$

March $60,000$

April $58,000$

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 $32,000$ 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 $1.$

Question Content Area

$1.$ 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.