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 $19,000$ units.

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 $114,000$ cc of solvent H$300.$

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

July $75,000$

August $80,000$

September $90,000$

October $70,000$

November $60,000$

December $50,000$

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 H$300$ to be purchased for July, August, and September, and for the quarter in total.