Pearl Products Limited of Shenzhen, Chins, manufactures ond distributes toys throughout Southeast Asis. Three cubic centimeters $($cc$)$

of solvent $H30O$ ore required to manufacture esch unit of Supermix, one of the company's products. The company is planning its raw

materisls needs for the third quarter, the quarter in which pesk sales of Supermix occur. To keep production snd sales moving

smoothly, the company has the following inventory requirements:

a$.$ The finished goods inventory on hand ot the end of each month must equal $3,000$ units of Supermix plus $20\%$ of the next month's

sales. The finished goods inventory on June $30$ is budgeted to be $17,200$ 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

row materials. The raw materisls inventory on June $30$ is budgeted to be $108,000$ cc of solvent $H300.$

c$.$ The compeny maintsins no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows:

Required:

Prepore a production budget for Supermix for the months July. August, September, snd October$-$

Prepare a direct materisls budget showing the quantity of solvent $H300$ to be purchssed for July, August, and September, and for

the quarter in total.

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Prepare a production budget for Supermix for the months July, August, September, and October.