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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

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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 is now planning raw materials needs for t which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements the third quarter, the quarter in a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units of Supermix plus 20% of the next month's sales. The f nished g00ds inventory on June 30 is budgeted to be 13,000 units b. The raw materials inventory on hand at the end of each month must be equai to one-half of the following c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 74,000 cc of solvent H300 July August September October November December Budgeted Sales in Units 55,000 60,000 70,000 50,000 40,000 30,000 Required: 1. Prepare a production budget for Supermix for the months July. August, September, and October Pearl Products Limited Production Budget July August September October Budgeted unit sales Total needs Required production in units

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