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 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 14,800 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 78,000 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows July August September October November December Budgeted Sales in Units 59,000 64,000 74.000 54,000 44,000 34,000 Required: 1. 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 October Total needs Required production in units 11 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. Pearl Products Limited Direct Materials Budget July Units of raw materials needed to meet production August September Third Quarter Total units of raw materials needed Units of raw materials to be purchased