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 now 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 be equal to 3,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 19,250 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 99,375 cc of solvent H300. C. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units July 65,000 August 70,000 September 80,000 October 60,000 November 50,000 December 40,000 Required: 1. Prepare a production budget for Supermix for the months July, August, Septemberand October. Pearl Products Limited Production Budget July August SeptembeOctobe Budgeted unit sales Total needs Required production in units 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and Septemberand for the quarter in total. Pearl Products Limited Direct Materials Budget suly August september Carter Units of raw materials needed to meet roduction Total units of raw materials needed Units of raw materials to be purchased