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Please answer correctly Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (co) of solvent H300 are
Please answer correctly Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (co) of solvent H300 are required to manufacture each unit of Supermix, one of the companys 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 2,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 15,400 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 86,000 cc of solvent H300. c. The company maintains no work in process inventories. Asales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units 67,000 August 72,000 September 82,000 62,000 November 52,000 42.000 Required 1. Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Production Budget August September october July 67,000 72,000 82,000 62,000 Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units
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