Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (C) 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 3.000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 14,800 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 90.000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth qu 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 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 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 August September Third Quarter Required production in units of finished goods 60,000 66,000 | 70,000 196,000 Units of raw materials needed per unit of finished goods 3 cc 3 3 3 cc Units of raw materials needed to meet production 180,000 198,000 210,000 588,000 Add: Desired units of ending raw materials inventory 99,000 105,000 L 78,000 Total units of raw materials needed 279.000 303,000 288,000 Less: Units of beginning raw materials inventory (90,000) (99,000) (105,000) Units of raw materials to be purchased 189,000 204.000 183,000 576,000 LI