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 companys 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:

1. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next months sales. The finished goods inventory on June 30 is budgeted to be 14,800 units.

2. The raw materials inventory on hand at the end of each month must equal one-half of the following months production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 90,000 cc of solvent H300.

3. 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 59,000 64,000 74,000 54,000 44,000 34,000 Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July 59,000 September October August 64,000 74,000 13,800 54,000 11,800 15,800 17,800 Budgeted unit sales Less: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units 81.800 74.800 14,800 89,600 15,800 87,800 17,800 105,600 65,800 13,800 79,800 97,600 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 f total. Pearl Products Limited Direct Materials Budget July Required production in units of finished goods 59,000 Units of raw materials needed per unit of finished goods 3) cc Units of raw materials needed to meet production 177,000 Add: Desired units of ending raw materials inventory 96,000 Total units of raw materials needed 265,500 Less: Units of beginning raw materials inventory 88,500 Units of raw materials to be purchased 354,000 August 64,000 3 cc 192,000 111,000 288,000 96,000 384,000 September 74.000 3) cc 222,000 295,500 333,000 111,000 444,000 Third Quarter 197,000 3 cc 591,000 81,000 886,500 295,000 1,181,500