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Pearl Products Li of Shen China, manufactures and distributes mitted zhen, toys throughout South East Asia. T cubic centimeters cc) of solvent hree H300 are
Pearl Products Li of Shen China, manufactures and distributes mitted zhen, toys throughout South East Asia. T cubic centimeters cc) of solvent hree H300 are required to manufacture each unit of Supermix, one of the s products. The company raw materials needs for is now planning the third quarter, the quarte in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. T he finished goods inventory on at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,200 units. b. T he raw materials inventory on hand at the end of each th must be equal to one-half of the following m onth's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 90,000 cc of solvent c. T he company m tains no work in nventories. Process A sales budget for Supermix for the last six months of the year follows. Budgeted Sales n Units July 71.000 August 76.000 September 86.000 66.000 November 56.000 December 46.000 Required: Prepare a production budget for Supermix for the months July, August, September, and Production Budget August Septemb Octobe Budgeted unit sales Total needs Required production in units
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