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 2,000 units of Supermix plus 25% of the next months sales. The finished goods inventory on June 30 is budgeted to be 14,250 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 75,375 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.

	Budgeted Unit Sales
July	49,000
August	54,000
September	64,000
October	44,000
November	34,000
December	24,000

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.

A monthly sales nuaget for Supermix tor the inira ang rourn quarters of the year Toniows. July August September October November December Budgeted Unit Sales 49,000 54,000 64,000 44,000 34,000 24,000 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 Required 3 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. Pearl Products Limited Production Budget July Budgeted unit sales August September October 49,000 54,000 64,000 44,000 Total needs 18,000 15,500 64,500 14,250 50,250 Required production in units 56,500 59,000 Required: 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. Peart Products Limited Direct Materials Budget July Required production in units of finished goods 50.250 Units of raw materials needed per unit of finished goods 3 Units of raw materials needed to meet production 150.750 Add: Desired units of ending raw materials inventory 84.750 Total units of raw materials needed 235,500 Less: Units of beginning raw materials inventory 75,375 Units of raw materials to be purchased 160.125 Third Quartar 165,750 August 56,500 3 cc 169,500 88,500 September 59,000 3 cc 177,000 62.250 CG 497.250 84,750 173.250 88,500 150,750 484,125 Required 1 Required)