SICK NYO 17 Exercise 8-10 Production and Direct Materials BudgL08-3, LOB-4) 1 Pearl Products Linded of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia Three cubic centimeters a of solvent 300 are required to manufacture each unit of Supermix, one of the company's products. The company now is an innow material needs for the third quarter, the quarter in which peak sale of supermix occur. To keep production and smoothly, the company has the following inventory requirements 2010 The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix of them sales. The finished goods inventory on June 30 is budgeted to be 21.250 units b. The raw materials inventory on hand at the end of each month must equal one half of the following month's production nepr raw materials. The raw materials inventory on June 30 is budgeted to be 105,375 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. Budgeted Unit Sales 69,000 74,000 84,000 64,880 54,000 44,000 July August September October November December References 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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget July August September October Budgeted unit sales Total needs Required production in units Required 3 > 210 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, in September and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and quarter in total Pearl Products Limited Direct Materials Budget July August September Third Quarter CO CC CC CC Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased