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a The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month's

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a The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,600 units. 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 66,000 cc of solvent H300 its C The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgete it Sal 43,800 48,000 Duly August 58,000 September 3,000 October November December 28,800 18,000 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 Pearl Products Limited Direct Materials Budget Third Quarter Units of raw materials needed per unit of fnished goods Units of raw materials needed to meet production Total unts of raw materials needed Units of raw materials to be purchased Required 1 a The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,600 units. 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 66,000 cc of solvent H300 its C The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgete it Sal 43,800 48,000 Duly August 58,000 September 3,000 October November December 28,800 18,000 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 Pearl Products Limited Direct Materials Budget Third Quarter Units of raw materials needed per unit of fnished goods Units of raw materials needed to meet production Total unts of raw materials needed Units of raw materials to be purchased Required 1

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