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Peerl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to
Peerl 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 raw meteriels needs for the third quarter, the quarter in which peek sales of Supermix occur. To keep production end sales moving smoothly, the compony has the following inventory requirements: e. The finished goods inventory on hand et the end of each month must equel 2,000 units of Supermix plus of the next month's soles. The finished goods inventory on June 30 is budgeted to be 20,250 units. b. The raw meteriols inventory on hand at the end of each month must equal one-half of the following month's production needs for row meteriels The raw materials inventory on June 30 is budgeted to be 111,375 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. B udgeted unit July August September October November December Required: Sales 73,ae 78, e 88, 68, e 58 ,e 48,e 1. Prepare e 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, end September, and for the quarter in total. Complete this question bv entering your answers in the tabs below. Required I Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Budgeted unit sales Total needs Required production in units Production Budget Required 1 Required 3
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