Daisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimetres (CC) of solvent Q80 are required to manufacture each unit of Fineclay, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineclay 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 be equal to 4,200 units of Fineclay plus 15% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 14,000 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 75,600 cc of solvent Q80. c. The company maintains no work-in-process inventories. A sales budget for Fineclay for the last six months of the year follows: July August September October November December Budgeted Sales in Units 49,600 56, eee 70, eee 42,00 28, eee 14,000 Required: 1. Prepare a production budget for Fineclay for the months of July to October. Answer is not complete. DAISY PRODUCTS LIMITED Production Budget July August September October Budgeted sales (units) Add: Desired ending inventory Total needs Deduct: Beginning inventory Required production olol 2. This part of the question is not part of your Connect assignment. 3. Prepare a budget showing the quantity of solvent Q80 to be purchased for July, August, and September, and for the quarter in total. Answer is not complete. DAISY PRODUCTS LIMITED Raw Materials Purchases Budget July August September Third Quarter Production needs (cc) Add: Desired ending inventory Total solvent Q80 needs Deduct: Beginning inventory Solvent Q80 purchases (cc)