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	70,000
February	85,000
March	40,000
April	46,000

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 34,000 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.

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 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 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