2. Daisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimetres (cc) of solvent Q80 are required to manufacture each unit of Eineclax, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineslax occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 2,550 units of Eineclax plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 8,500 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 45,900 cc of solvent Q80. C. The company maintains no work-in-process inventories. A sales budget for Eineslax for the last six months of the year follows: Budgeted Sales in Units July 29,750 August 34,000 September 42,500 October 25,500 November 17,000 December 8,500 Required: 1. Prepare a production budget for Fineclay for the months of July to October DAISY PRODUCTS LIMITED Production Budget August September October Total needs 3. Prepare a budget showing the quantly of solvent Q80 to be purchased for July, August and September, and for the quarter in total DAISY PRODUCTS LIMITED Raw Materials Purchases Budget July August September Third Quarter Total solvent 080 reeds