The things in red are wrong!

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 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,200 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 108,000 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 71,000 76,000 86,000 66,000 56,000 46,000 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. 1 Pearl Products Limited Production Budget July August September October Budget Unit Sales 71,000 76,000 86,000 66,000 Add: Desired Units of ending finished goods inventory 17,200 18,200 20,200 16,200 Total Needs 88,200 94,200 106,200 82,200 Less: Units of beginning finished goods inventory 17,200 17,200 18,200 16,200 Required Production in Units 71,000 77,000 88,000 3 Pearl Products Limited Direct materials Budget July August September Third Quarter Required production in units of finished goods $ 71,000 $ 77,000 $ 88,000 $ 236,000 Units of Raw Materials Needed Per Unit Of Finished Goods 3 cc 3 cc 3 cc 3 cc Units of Raw Materials needed to meet production $ 213,000 $ 231,000 $ 264,000 $ 708,000 Add: Units of beginning raw materials inventory $ 115,500 $ 132,000 $ 99,000 $ 99,000 Total units of raw materials needed $ 328,500 $ 363,000 $ 363,000 $ 1,054,500 Less: units of beginning raw materials inventory $ 106,500 $ 115,500 $ 132,000 $ 106,500 Units of raw materials to be purchased $ 222,000 $ 247,500 $ 231,000 $ 700,500 . 66,000