mework Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not i Exercise O-Iv Pruuutton and wirect materiais ouagets [LUO-S, LUO- Pearl 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 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 4,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 19,000 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 114,000 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. July August September October November December Budgeted Unit Sales 75,000 80,000 90,000 70,000 60,000 50,000 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 3 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 3 October Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget July August September Budgeted unit sales 75,000 80,000 90,000 Add: Desired units of ending finished goods 18.000 % 20,000 16,000 inventory Total needs 93,000 100,000 106,000 Less: Units of beginning raw materials inventory (19,000) (18,000) (20,000) Required production in units 74,000 82,000 86,000 > 70,000 14,000 84.000 3 O (16,000) 68.000 Required 3 > December 50,000 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 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 Pearl Products Limited Direct Materials Budget July Required production in units of finished goods 74,000 Units of raw materials needed per unit of finished goods 3 Units of raw materials needed to meet production 222,000 Add: Desired units of ending raw materials inventory 123,000 Total units of raw materials needed 345,000 Loss: Units of beginning finished goods inventory 111,000 3 Units of raw materials to be purchased 234.000
