Requirement 1 is complete and correct. Need helping with Requirement 3. Wrong answers are denoted with the red x

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is planning its 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 equal 4,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 11,800 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 raw materials. The raw materials inventory on June 30 is budgeted to be 60,000 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 39,000 44,000 54,000 34,000 24,000 14,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. 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. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July October August 44,000 September 54,000 39,000 34,000 12,800 14,800 10,800 8,800 Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units 51,800 58,800 64,800 11,800 12,800 14,800 50,000 42,800 10,800 32,000 40,000 46,000 Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the total Pearl Products Limited Direct Materials Budget July Required production in units of finished goods 39.000 Units of raw materials needed per unit of finished goods 300 Units of raw materials needed to meet production 117,000 Add: Desired units of ending finished goods inventory 68,000 Total units of raw materials needed 183,000 Less: Units of beginning finished goods inventory 3 60.000 Units of raw materials to be purchased 123.000 August 44,000 3 132,000 81.000 213,000 66.000 147.000 September 54,000 30 162,000 48.000 210,000 81.000 129,000 Third Quarter 137,000 3 300 411,000 48,000 450.000 60.000 399,000