Production Budget and Direct Materials Purchases Budgets Pets Plus, Inc. produces otic fluid for dogs. The...

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Production Budget and Direct Materials Purchases Budgets 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: January February March April Unit Sales 80,000 50,000 60,000 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. 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 80,000 50,000 60,000 190,000 Desired ending inventory 7,500 9,000 8,700 8,700 Total needs Less: Beginning inventory 87,500 32,000 59,000 68,700 198,700 Units produced 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 Bottles Bottles for production Desired ending inventory Total needs Less: Beginning inventory Bottles purchased 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 Production Budget and Direct Materials Purchases Budgets 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: January February March April Unit Sales 80,000 50,000 60,000 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. 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 80,000 50,000 60,000 190,000 Desired ending inventory 7,500 9,000 8,700 8,700 Total needs Less: Beginning inventory 87,500 32,000 59,000 68,700 198,700 Units produced 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 Bottles Bottles for production Desired ending inventory Total needs Less: Beginning inventory Bottles purchased 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