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:

$\backslash$table$[[,$Unit Sales$],[$January$,40,000],[$February$,85,000],[$March$,70,000],[$April$,58,000]]$

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 $39,000$ 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 $1.$

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

$\backslash$table$[[$Line Item Description,January,February,March,Total$],[$Sales$,40,000,85,000,70,000,195,000],[$Desired ending inventory,,,,$],[$Total needs,,,,$],[$Less: Beginning inventory,$39,000,,,],[$Units produced,,,,$]]$

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

$\backslash$table$[[$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

$\backslash$table$[[$Line Item Description,January,February,Total$],[$Production$],[$Ounces$,,,],[,,7,]]$

Next

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

$\backslash$table$[[$Line Item Description,January February,Total,$],[$Production$,,,],[$Ounces$,,,],[$Ounces for production,,,$],[$Desired ending inventory,,,$],[$Total needs,,,$],[$Less: Beginning inventory,,,$],[$Ounces purchased,,,$]]$

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