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: Month Unit Sales January 70,000 February 55,000 March 80,000 April 54,000 Company policy requires that ending inventories for each month be 20% 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