a$.$ The finlshed 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 finlshed goods Inventory on June $30$ is budgeted to be $11,250$ units.

b$.$ The raw materlals Inventory on hand at the end of each month must equal one$-$half of the following month's production needs for

raw materlals. The raw materlals inventory on June $30$ is budgeted to be $57,375cc$ of solvent $H300.$

c$.$ The company maintains no work in process Inventorles.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

Prepare a production budget for Supermix for the months July, August, September, and October.

Prepare a direct materlals budget showing the quantlty of solvent H$300$ 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 $1$

Prepare a production budget for Supermix for the months July, August, September, and October.