Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each

image text in transcribed
image text in transcribed
image text in transcribed
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) 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 2000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 20,250 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 111,375 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 September October November December Unit Sales 73,000 78,000 88,000 68,000 58,000 48,000 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 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 1 of 2 Next > Required 1 Required 3 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 Required 3 > muoyunu MEYMUS Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and forth total. Pearl Products Limited Direct Materials Budget July August September Third Quarter ce co ce Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Mary A. Meigs, Mark Bettner, Ray Whittington

10th Edition

0070433607, 978-0070433601

More Books

Students also viewed these Accounting questions

Question

Has each action got a clear and measurable outcome?

Answered: 1 week ago

Question

Have you eliminated jargon and unexplained acronyms?

Answered: 1 week ago