Exercise 8-10 Production and Direct Materials Budgets (L08-3, L08-4) Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia Three cubic centimeters (CC) of solvent H300 are required to manufacture each unt of Supermix, one of the company's products. The company now is planning 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: a. The finished goods Inventory on hand at the end of each month must equat 4,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18,250 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 87,375 cc of solvent H300. c. The company maintains no work in process inventories. THE 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 57,000 62, 72.000 52,00 42,00 32, 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 1300 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 a Prepare a production budget for Supermix for the months July, August September and October Pearl Products Limited Production Budget July August Sumber October Budgeted unt sales Total needs Required production in units Required 3 > Exercise 8-10 Production and Direct Materials Budgets (L08-3, L08-4) Pear Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (CC) of solvent H300 are required to manufacture each unit of Superm, one of the company's products. The company now is planning 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 ook a The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18.250 units. D. 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 87.375 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 rence July August September October November December budgeted Unit Sales 57.000 62,00 72, 52.000 42,000 32,000 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 July August, and September, and for the quarter in total Complete this question by entering vour answers in the tabs below. Required: Required 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. Pearl Product Limited Direct Matenals Budget July August September Third Quarter ce CE 00 Units of amenals needed per unit of fished goods Units of raw materials needed to meet production Tuunits of raw materiais de Unis of raw man be purchased