Proctuction Budget and Direct Materials Purchases Budgets

Pets flus, Inc, produces obic 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:

$\backslash$table$[[,$Unit Sales$],[$January$,60,000],[$February$,85,000],[$March$,40,000],[$April$,42,000]]$

Company policy requires that ending inventonies for each month be $20\%$ of next month's sales. At the beginning of January, the inventory of otic fluld is $33,000$ bottles, January $1.$

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

For the First Quarter of the Year

Line Item Description January February March

Sales

Desired ending inventory

Total needs

Less: Beginning inventory

Units produced

Fercors

DOckMr Work