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 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 2,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 20,250 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 111,375 cc of solvent H300. Budgeted Sales in Units 73,000 78,000 88,000 68,000 58,000 48,000 July August er November Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget July AugustSeptember October Budgeted unit sales Aod: Desired units of ending finished goods Total needs Less: Units of beginning finished goods inventory Required production in units 73,000 78,000 88,000 68,000 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. Direct Materials Budget Jul August September Third Quarter Units of raw materials needed to meet production Add: Desired units of ending raw Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased