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 planning its 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 3,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,250 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 63,375 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. Budgeted July August Beptember October November December Unit Salas 41,000 46,000 56,000 36.000 26,000 16,000 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 Check my work ViewP 10 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 20 points Complete this question by entering your answers in the tabs below. Book Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October Print Pearl Products Limited Production Budget August 48,000 September 56,000 October 36,000 Budgeted unt sales Add: Desired units of ending raw materials inventory Total needs Low: Unit of beginning raw materials inventory Required production in units 41,000 14,500 55.500 13.260 42.250 17,000 63,000 12,000 68.000 17.000 9,500 45,500 14,500 48.500 12,000 33.500 51.000 Required 3 > 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 42.250 Units of raw materiais needed per unit of finished goods 3 cc Units of raw materiais needed to meet production 126.750 Add: Desired units of ending raw materials inventory 72,750 Total units of raw materials needed 199,500 Less Units of beginning raw materials inventory 63,375 Units of materials to be purchased 136,125 August 48,500 31 cc 145,500 76,500 222,000 72,750 149.250 September 51.000 3 cc 153,000 50.250 203 250 78,500 126,750 Third Quarter 33,500 3 100,500 35,250 135,750 50,250 85,500 Required 1
