Tonga Toys manufactures and distributes a number of products to retailers One of these products, Playclay, requires five pounds of material A135 in the manufacture of each unit The company is now planning raw materials needs for the third quarter u2014July, August, and September Peak sales of Playclay occur in the third quarter of each year To keep production and shipments moving smoothly, the company has the following inventory requirements a The finished goods inventory on hand at the end of each month must be equal to 8,000 units plus 30 of the next month u2019s sales The finished goods inventory on June 30 is budgeted to be 19,400 units b The raw materials inventory on hand at the end of each month must be equal to one half of the following month u2019s production needs for raw materials The raw materials inventory on June 30 for material A135 is budgeted to be 102,500 pounds c The company maintains no work in process inventories A sales budget for Playclay for the last six months of the year follows Budgeted Sales in Units July 38,000 August 48,000 September 68,000 October 33,000 November 18,000 December 8,000 1 Prepare a production budget for Playclay for the months July, August, September, and October (Input all amounts as positive values Do not round intermediate calculations ) Playclay Production Budget July August September October Budgeted sales (Click to select) Deduct Add (Click to select) Beginning inventory Ending inventory Total needs (Click to select) Add Deduct (Click to select) Beginning inventory Ending inventory Required production 3 Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total (Input all amounts as positive values Do not round intermediate calculations ) Playclay Direct Materials Budget July August September Third Quarter Production needs (Click to select) Add Deduct (Click to select) Beginning inventory Ending inventory Total Material A135 needs (Click to select) Add Deduct (Click to select) Beginning inventory Ending inventory Material A135 purchases

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Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires five pounds of material A135 in the manufacture

Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires five pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter%u2014July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements:

a.	The finished goods inventory on hand at the end of each month must be equal to 8,000 units plus 30% of the next month%u2019s sales. The finished goods inventory on June 30 is budgeted to be 19,400 units.
b.	The raw materials inventory on hand at the end of each month must be equal to one-half of the following month%u2019s production needs for raw materials. The raw materials inventory on June 30 for material A135 is budgeted to be 102,500 pounds.
c.	The company maintains no work in process inventories.

A sales budget for Playclay for the last six months of the year follows.

	Budgeted Sales in Units
July	38,000
August	48,000
September	68,000
October	33,000
November	18,000
December	8,000

1.	Prepare a production budget for Playclay for the months July, August, September, and October. (Input all amounts as positive values. Do not round intermediate calculations.)

Playclay Production Budget
	July	August	September	October
Budgeted sales
:

Total needs
:

Required production

3.	Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total. (Input all amounts as positive values. Do not round intermediate calculations.)