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 now is 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: The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next months sales. The finished goods inventory on June 30 is budgeted to be 10,600 units. The raw materials inventory on hand at the end of each month must equal one-half of the following months production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 66,000 cc of solvent H300. 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 43,000 August 48,000 September 58,000 October 38,000 November 28,000 December 18,000 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.

Complete this question by entering your answers in the tabs below Required 1 Required 3 Pint Prepare a production budget for Supermix for the months July, August, Septernber, and October Pean Products Limited Production Budget July August SeptamberOesober 43.000 48,000 Budgeted unit sales Add Deseed units of ending frished goods irventory Total needs Less Unts of beginnng inished goods ewentory Requred production in units Required 3