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 4,000 units of Supermix plus 25% of the next month's sales. The finished goods Inventory on June 30 is budgeted to be 15,250 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 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. July August September October November December Budgeted 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 Pearl Products Limited Production Budget July August September October 45,000 50,000 60,000 Budgeted unit sales Add: Desired units of ending finished goods inventory 16,500 19,000 14,000 74,000 40,000 11,500 51,500 Total needs 61,500 69,000 15,250 Less: Units of beginning finished goods inventory Required production in units 46,250 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. August September Third Quarter CC Pearl Products Limited Direct Materials Budget July Required production in units of finished goods 46,250 Units of raw materials needed per unit of finished goods CC Units of raw materials needed to moet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased