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 companys 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 3,900 units of Fineclay plus 15% of the next months sales. The finished goods inventory on June 30 is budgeted to be 13,000 units.
b.	The raw materials inventory on hand at the end of each month must be equal to one-half of the following months production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 70,200 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

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 3,900 units of Fineclay plus 15% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,000 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 70,200 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 August September October November December Budgeted Sales in Units 45,500 52,000 65,000 39,000 26,000 13,000 Required: 1. Prepare a production budget for Fineclay for the months of July to October DAISY PRODUCTS LIMITED Production Budget July AugustSeptember 0ctober udgeted sales (units) Add: Desired ending inventory Total needs 45 500 52,000 65,000 39,000 educt: Beginning inventory Actual sales (units) 2. Not available in Connect 3. Prepare a budget showing the quantity of solvent Q80 to be purchased for July, August, and September and for the quarter in total