Check my w 17 Exercise 8-10 (Algo) Production and Direct Materials Budgets (L08-3, L08-4) 1.14 Joints 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: BOOK References a. The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix plus 20% of the next month's sales. The finished goods Inventory on June 30 is budgeted to be 11,800 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 60,000 cc of solvent H300. 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 July August September October November December Budgeted Unit Sales 39,000 44,000 54,000 34,000 24,000 14,000 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 Julv. August, and September, and for 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 September October August 44.000 39,000 54,000 34,000 Budgeted unit sales Add: Desired units of ending raw materials inventory Total needs Less: Units of beginning raw materials inventory Required production in units Denu 17 22 Nevt Che Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a direct maten weget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in Required 3 total. Pearl Products Limited Direct Materials Budget July August September Third Quarter CG CC ce Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased ANCA