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Required: Prepare a production budget for Supermix for the months July, August, September, and October. Prepare a direct materials budget showing the quantity of solvent
Required:
Prepare a production budget for Supermix for the months July, August, September, and October.
Prepare a direct materials budget showing the quantity of solvent to be purchased for July, August, and September, and for
the quarter in total.
Complete this question by entering your answers in the tabs below.
Prepare a direct materials budget showing the quantity of solvent to be purchased for July, August, and September, and for the quarter in total.Pearl Products LImIted of Shenzhen, China, manufactures and distributes toys throughout Southeast Asla. Three cublc centImeters cc
of solvent are required to manufacture each unIt of Supermix, one of the company's products. The company Is planning Its raw
materlals needs for the third quarter, the quarter in which peak sales of Supermlx 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 equal units of Supermix plus of the next month's
sales. The finished goods Inventory on June is budgeted to be units.
b The raw materlals Inventory on hand at the end of each month must equal onehalf of the following month's production needs for
raw materlals. The raw materlals inventory on June is budgeted to be of solvent
c The company maintains no work in process Inventorles.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows:
Requlred:
Prepare a production budget for Supermix for the months July, August, September, and October.
Prepare a direct materlals budget showing the quantity of solvent to be purchased for July, August, and September, and for
the quarter in total.
Complete this question by entering your answers in the tabs below.
Prepare a production budget for Supermix for the months July, August, September, and October.
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