Prout, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Prout markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.

Read the requirements1.

Requirement 1.

For 2018, Prout marketing managers project monthly sales of 440,000 12-ounce bottles and 180,000 1-gallon containers. Average selling prices are estimated at $0.60 per 12-ounce bottle and $1.20 per 1-gallon container. Prepare a revenues budget for Prout, Inc., for the year ending December 31, 2018.

Revenues Budget
For Year Ending December 31,2018
	Units	Price	Total
12-oz. bottles
1-gallon containers
Budgeted revenues

Requirement 2.

Prout begins 2018 with 970,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 640,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Prout must produce during 2018?

Production Budget (in Units)
For the Year Ending December 31,2018
		12 oz. bottles
(1)
(2)
(3)
(4)
Units to be produced

Requirement 3.

The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 210,000 units. If the production budget calls for Prout to produce 1,200,000 1-gallon containers during 2018,

what is the beginning inventory of 1-gallon containers on January 1, 2018?

The beginning inventory of 1-gallon containers, in units, is

on January 1, 2018.

1: Requirements

1.	For 2018, Prout marketing managers project monthly sales of 440,000 12-ounce bottles and 180,000 1-gallon containers. Average selling prices are estimated at $0.60 per 12-ounce bottle and $1.20 per 1-gallon container. Prepare a revenues budget for Prout, Inc., for the year ending December 31, 2018.
2.	Prout begins 2018 with 970,000 -ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 640,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Prout must produce during 2018?
3	The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 210,000 units. If the production budget calls for Prout to produce 1,200,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?