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 2,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,000 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 84,000 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 55,000 August 60,000 September 70,000 50,000 November 40,000 December 30,000 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 October Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 3 October Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget July August September Budgeted unit sales 55,000 60,000 70,000 Add: Desired units of onding raw materials inventory 14,000 16,000 12,000 69,000 76,000 82,000 Less: Units of beginning raw materials inventory 13,000 14.000 16,000 Required production in units 56,000 62,000 66,000 50,000 10,000 60,000 Total needs solo > 12,000 48,000 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 total. d 3 Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Add: Units of beginning raw materials inventory Units of raw materials to be purchased Pearl Products Limited Direct Materials Budget July August 56,000 62,000 cc CC 168,000 186,000 93,000 105,000 261,000 291,000 84.000 93,000 345,000 384,000 September 70,000 3 210,000 24,000 234,000 105,000 339,000 Third Quarter 188,000 3CC 564,000 24,000 588,000 24,000 612,000