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 now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occut. 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 4,000 units of Supermix plus 25% of the next month's 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 69.375 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 Austust September October Novesber December Unit Sales 45,000 50,000 60,000 40.000 30,000 20,000 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 Prepare a production budget for Supermix for the months July August, September, and October ces Pearl Products Limited Production Budget July September October August 50,000 Budgeted unit sales 45,000 60,000 40,000 Total needs Required production in units Pearl Products Limited Direct Materials Budget July August September Third Quarter Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production ce CC Total units of raw materials needed Units of raw materials to be purchased