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Exercise 8-10 (Algo) Production and Direct Materials Budgets [LO8-3, LO8-4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asla. Three cublc centlmeters (cc) of solvent H300 are requlred to manufacture each unit of Supermix, one of the company's products. The company is planning its raw materlals 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 finlshed goods Inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month's sales. The finlshed goods Inventory on June 30is budgeted to be 10,600 unlts. b. The raw materlals Inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materlals. The raw materlals inventory on June 30 is budgeted to be 66,000cc of solvent H300. c. The company maintains no work in process Inventorles. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Requlred: 1. Prepare a production budget for Supermlx for the months July, August, September, and October. 3. Prepare a direct materlals budget showing the quantity of solvent H30O 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. Prepare a production budget for Supermix for the months July, August, September, and October. Exercise 8-10 (Algo) Production and Direct Materials Budgets [LO8-3, LO8-4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asla. Three cublc centimeters (cc) of solvent H300 are requlred to manufacture each unlt of SupermIx, one of the company's products. The company is planning its raw materlals 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 finlshed goods Inventory on hand at the end of each month must equal 2,000 unlts of Supermlx plus 20% of the next month's sales. The finlshed goods inventory on June 30 is budgeted to be 10,600 units. b. The raw materlals Inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materlals. The raw materlals Inventory on June 30 is budgeted to be 66,000cc of solvent H300. c. The company maintains no work in process Inventorles. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materlals budget showing the quantlty 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. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the total

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