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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters of solvent 300 are required to manufacture each

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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters of solvent 300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw material needs for the third quarter, the quarter in which peak sales of Supermix cour. To keep production and sales moving smoothly, the company has the flowing inventory requirements a. The finished goods inventory on hand at the end of each month must be l &000 units of Supermax plus 25% of the next montes sales. The finished goods inventory on June 30 is budged to be 21.250 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 88.000 cc of solvent H300 c. The company maintains to work in process inventories A sales budget for Supermix for the last six months of the year follows 74.000 Salamber November December Required 1. Prepare a production budget for Su r emony. August S e nd October Pearl Products Limited Precio August September October Budgeted unit sales Re p roduction in w e now or try tonight Required: 1. Prepare a production budget for Supermix for the months July August September, and October Pearl Products Limited Production Budget Augu b er Budgeted un sales Required production in 3. Prepare a direct materials budget showing the quantity of solvent 300 to be purchased for July August, and September, and for the quarter in total Pearl Products Limited Direct Materials Budget August September Third Quarter Unio n ded to production Total units of raw materials needed

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