Production Budget and Direct Materials Purchases Budgets

Pets Plus, Inc. produces otic fluld for dogs. The otic fluid is soid in $12-$ounce plastic bottles. The sales budget for the first four months of the year is as follows:

$\backslash$table$[[,$Unit Sales$],[$January$,50,000],[$February$,55,000],[$March$,70,000],[$April$,50,000]]$

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 $39,000$ bottles. next month's production needs. That policy was met on 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

Line Item Description January February March Total

Sales

Desired ending inventory

Total needs