5 Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning 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: 0.12 points a. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 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 54,000 cc of solvent H300. C. The company maintains no work in process inventories. eBook con A monthly sales budget for Supermix for the third and fourth quarters of the year follows. References July August September October November December Budgeted Unit Sales 35,000 40,000 50,000 30,000 20,000 10,000 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 direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. September 50,000 Third Quarter 125,000 CC cc Pearl Products Limited Direct Materials Budget July Required production in units of finished goods 35,000 Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production 105,000 Add: Desired units of ending raw materials inventory 55,000 Total units of raw materials needed 160,000 Less: Units of beginning raw materials inventory 54,000 Units of raw materials to be purchased 106,000 August 40,000 3 CC 120,000 65,000 185,000 55,000 130,000 150,000 65,000 215,000 65,000 150,000 375,000 65,000 190,000 54,000 136,000