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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

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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 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 3,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,250 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 63,375 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 Unit Sales July 41,000 August 46,000 September 56,000 October 36,000 November 26,000 December 16,000 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 October Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July August September Budgeted unit sales 41,000 46,000 56,000 Add: Units of beginning raw materials inventory 14,500 17.000 12.000 Total needs 55,500 63,000 68,000 Less: Units of beginning finished goods inventory 9,500 14,500 17,000 Required production in units 46,000 48,500 51,000 Boquine Required 3 > 36,000 9,500 45,500 12,000 33,500 Complete this question by entering your answers in the tabs below. Required 1 Required 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. August 48,500 31 cc September 51.000 31 cc Third Quarter 145,500 3 CC Poart Products Limited Direct Materials Budget July Required production in units of finished goods 46,000 Units of raw materials needed per unit of finished goods 3 oc Units of raw materials needed to meet production Add: Desired units of ending finished goods inventory Total units of raw materials needed Less: Units of beginning finished goods inventory Units of raw materials to be purchased

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