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 an 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 twentory on June 30 is budgeted to be 14,800 units. b. The raw materials inventory an 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 300 The company mas no work in process inventories A monthly sales budget for Supermix for the third and fourth quarters of the year follows ly 52.000 14.000 14.00 c . 140 De > 5 OM & 7 9 0 1 w R T Y U 1 P 7 B 1 $ D F G H . J L 4 5 Da A-O-A Aabe habct AaBbc ABC 1 Nom No Space Heading Heading? Select Adib DO Font Paragua Sht Fone Production Budget July August September October Budgeted unit sales Total needs Requated production in units 2. 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 Third July August September Quarter loc CC CC Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Tot units of raw matonals needed Urts of raw materials to be purchased 3 - 2 Type to seach 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 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 quarters of the year follows. Budgeted Unit Sales July 59,000 August 64,000 September 74,000 October November December 54,000 44,000 34,000 135 words D Type here to search o 3 Production Budget July August September October Budgeted unit sales Total needs Required production in units 2. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, Pearl Products Limited Direct Materials Budget Third July August September Quarter CC CC CC 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 1757 word DR Type here to search O a 2