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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
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: Company policy requires that ending inventories for each month be 25% of next month's sales. At the beginning of January, the inventory of otic fluid is 31,000 bottles. 13 Required: Download Excel spreadsheet 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. 2. Prepare a direct materials purchases budget for bottles for the months of January and February. Round all calculations to the nearest whole number
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