Check my work Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia Three cubic centimeters of solvent H300 are required to manufacture each unit of Supermx one of the company products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermt occur. To keep production and sales moving smoothly, the company has the following inventory requirements . The finished goods inventory on hand at the end of each month mustegvel 3,000 units of Supermix plus 25% of the next month's sales. The finished goods Inventory on June 30s budgeted to be 16 250 units b The raw materials invertory on hand at the end of each month must equal one-half of the following month production needs for Tow materials. The raw materials inventory on June 30 is budgeted to be 1375 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 ter December unit Sales 53,000 60,000 AB,000 1.100 Required: Nav Print Red 1 Required teens Prepare a production budget for Supermix for the months July August September, and October Pearl Products Production Budget July 153,000 October 15.000 58.000 000 Budgeted unt sales AGD Desired units of ending finished goods inventory Totale Less Units of being frihed goos invertory Required production in 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 now is planning row 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 a. The finished goods inventory on hand at the end of each month must equal 3.000 units of Supermix plus 25% of the next month's sales. The finished goods Inventory on June 30 is budgeted to be 16 250 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 81.375 cc of solvent H300 The company maintains no work in process inventories, A monthly sales budget for Supermix for the third and fourtis-quarters of the year follows July August September October ber December Budged 53,000 58.000 68.000 48.000 18. 28.000 Che 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 August September Third Quarter Pearl Products Limited Direct Materials Budget July Required production in units of finished goods Units of raw materials needed per unit of finished goods CC Units of raw materialsheded to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased
