Exercise 8-10 Production and Direct Materials Budgets [LO8-3, LO8-4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubbc centimeters (cc) of solvent H300 are required to manufacture each unit 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 equal 2,000 units of Supermix plus 25% of the next month's sales. The fin shed goods Inventory on June 30 is budgeted to be 17,250 units. . 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 93,375 CCof solvent H300. C. The company maintains no work in process inventories A monthily sales budget for Supermix for the third and fourth quaiters of the year follows. Budgeted Unit Sales 61,000 66,000 September 76, 000 October ,000 November 46,000 December 36,000 July August L Prepare a production budget for Supermx 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 your answers in the tabs below Required Required Prepare a production budget for Supermix for the months July, August, September, and October. Production Budget Budgeted unit sales Total needs Required production in units