Peart Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubie eentimeters (ce) of solveut H300 ate required to manufacture each unit of Supermix, one of the company's products. The company is planning its raw materinls needs for the third quirter, the quarter in which peak sales of Supermix occur. To kecp 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 tunits of Stpermix plus 20% of the next month's sales. The finiahed goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must equal one-balf of the following month's production needs for ma materials. The raw materials inventory on Jume 30 is budgeted to be 54,000 ec of solvent H300. e. The eormpany maintains no work in process inventories. A monthly sales budget for Supermix for the third and fouth quarters of the year follows. Required 1. Prepare a production budget for Supermix for the monthw July, August, September, and October. 2. Rxamine the production budget that you prepared in (1) above. Why will the company produce more usits thas it sells in July and August, and fewer uatita than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of solvent H300 to be porchased for July, August, and September, and for the quarter in total