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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.

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. image text in transcribed
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Saved Help Save & Exit Submit Check my work earl Products Limited of Shenzhen, China, manufactures and distributes toys roughout South East Asia. Three cubic centimeters (cc) of solvent H300 are equired to manufacture each unit of Supermix, one of the company's products. The ompany now is planning raw materials needs for the third quarter, the quarter in hich peak sales of Supermix occur. To keep production and sales moving moothly, the company has the following inventory requirements: . The finished go ods 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. o. 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. July August September October November December Budgeted Unit Sales 41,000 46,000 56,000 36,000 26,000 16,000 Prev1 of 2i Next >

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