17 Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: 0.52 points a. The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 11.250 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 57,375 cc of solvent H300. c. The company maintains no work in process inventories. cBook 0 Files A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Print Budgeted Unit Sales 37,000 42,000 52,000 32,000 22,000 12,000 July August September October November December References Required: 1. Prepare a production budget for Supermix for the months July August, September, and October 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July August September Budgeted unit sales October Total needs Required production in units (Required 1 Required 3 > 18 I 0.52 points Block Required information (The following information applies to the questions displayed below.) Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below. Deech Corporation Balance sheet June 30 Assets $ 35,00 Accoranta receivable 141.00 Inventory 83,250 plant and equipment, tot apreciation 226,000 Total saata 5 535,250 Liabistles and Stockholders' Equity Acenta payale 587.DDD Con tok 350, DDD Rated earn 98.250 Total liabilities and stockholders' equity 5 535,250 Print Hences Beech's managers have made the following additional assumptions and estimates 1 Estimated sales for July, August, September, and October will be $370,000, S390,000, $380,000, and $400,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 45% in the month of sale and 55% in the month following the sale All of the accounts receivable at June 30 will be collected in July. 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4 Monthly selling and administrative expenses are always $50.000. Each month $7,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to Issue any common stock or repurchase its own stock during the quarter ended September 30. Required: 1. Prepare a schedule of expected cash collections for July August, and September. 2. Prepare a merchandise purchases budget for July August, and September. Also compute total merchandise purchases for the quarter ended September 30, 2 b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 29 Req? Reg 4 Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections Month July August September Quarter S 0 Fromly sales 0 From August Sales 0 From September sales 0 Total cash collections 5 os Ols 0 s Reg 1 Reg 2A > 19 0.64 points . Required information Chapter 8: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo) Step 1: Download the Applying Excel form located on the left hand side, under files. If you have trouble, the file is also located in D2L under Course Files and Resources Step 2: Then enter formulas in all cells that contain question marks. For example, incel a26 enter the formula B5. Ater entering formules in all the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem Step 3: Check your worksheet by changing the budgeted unt sales in Quarter 2 of Year 2 in cel C5 50 75,000 unts. The required production for the year should be 274,000 unts. The cost of raw materials to be purchased for the year should be $1,106,800, whereas the boral cash disbursements for the year should be $1,095,980. If you do not get this answer find the errors in your worsheet and correct them. Book Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions Helene Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the seiling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Data Bludgeted unit alea Selling price per unit Year 2 gaste 2 3 70,000 115,0DD Year 3 rte 2 90,000 100, DDD 45,000 60,000 B D E F G A 1 Chapter 8. Applying Excel 2 3 Dala Year 3 Quarter 2 3 4 2 + Budgeted unt sales 5 45,000 70,000 115,000 60,000 90,000 100,000 5 $ 6 Selling price per unit 7 - Accounts receivable beginning balance 8 Sales collected in the quarter sales are made 9 Sales collected in the quarter for sales we made Desired ending finished goods inventory is 11 - Finished goods inventory beginning 12 Raw materials required to produce one unit 13 - Desired ending inventory of raw materials is Raw materials invertory beginning 15 Raw material costs 16 Raw materials purchases are paid 17 Accounts payable for raw materials, beginning balance 18 7 per unit 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 5 pounds 10% of the next quarter's production needs 23,000 pounds 0.80 per pound B0% in the quarter the purchases are made 40% in the quarter following purchase 81,500 5 5 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year 5. What is the total required production for the year under this revised budge:? Total required production for the year What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for a year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year c. After seeing this revised budget the production manager cautioned that due to the current production constraint, a complex miling machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem? OND Ves