Fenzel Slide Oil produces a lubricant, SlickTone, which is used on trombone slides. Information about the budget for the year 2015 is as follows: 1. The company expects to sell 7,000 bottles of SlickTone in the first quarter, 6,300 in the second quarter, 10,100 in the third quarter, and 8,100 in the fourth quarter. 2. A bottle of SlickTone requires 5 ounces of Chemical A and 3.5 ounces of Chemical B. 3. For the first, second, and third quarters of 2015, the desired ending inventory of finished goods is equal to 9 percent of next quarter’s sales, whereas the desired ending inventory for material is 12 percent of next quarter’s production requirements. 4. There are 1,700 bottles of SlickTone, 4,900 ounces of Chemical A, and 2,400 ounces of Chemical B on hand at the beginning of the first quarter. 5. At the end of the fourth quarter, the company must have 900 bottles of SlickTone, 8,200 ounces of Chemical A, and 3,300 ounces of Chemical B to meet its needs in the first quarter of 2016. 6. The cost of Chemical A is $1.00 per ounce, the cost of Chemical B is $0.14 per ounce, and the selling price of SlickTone is $13 per bottle. 7. The cost of direct labor is $0.55 per bottle, and the cost of variable overhead is $0.70 per bottle. Fixed manufacturing overhead is $2,200 per quarter. 8. Variable selling and administrative expense is 3 percent of sales and fixed selling and administrative expense is $2,500 per quarter. Collapse question part (a) Prepare a production budget for each quarter of 2015.