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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asla. Three cubic centimeters $($cc$)$ of solvent $H300$ are required to manufacture each unit of Supermix, one of the company's products. The company now is planning 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 finished goods inventory on hand at the end of each month must equal $2,000$ units of Supermix plus $25\%$ of the next month's sales. The finished goods inventory on June $30$ is budgeted to be $17,250$ 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 materials. The raw materials inventory on June $30$ is budgeted to be $93,375$ cc of solvent $H300.$

c$.$ The company maintailns no work in process inventorles.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

$\backslash$table$[[,\backslash$table$[[$Budgeted$],[$Unit Sales$]]],[$July$,61,000],[$August$,66,000],[$September$,76,000],[$October$,56,000],[$November$,46,000],[$December$,36,000]]$

Required:

Prepare a production budget for Supermix for the months Jully, August, September, and October.

Prepare a direct materials budget showing the quantity of solvent H$3$OO to be purchased for July. August, and September, and for the quarter in total.

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Required $1$

Required $3$

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.

$\backslash$table$[[$Pearl Products Limited$],[$Direct Materials Budget$],[,$July,,August,,Septernber,,Third Quart,$],[$Required production in units of finished goods,$62\mathrm{.}250,,68,500,,71,000,,201,750,],[$Units of raw materials needed per unit of finished goods,$3.,cc,3,ce,3,c,3,$c$],[$Units of raw materials needed to meet production,$186,750,,205,500,,213,000,,605,250,],[$Add: Desired units of ending raw malerials inventory,$102,750,,106,500,,80,250,,80,250,],[$Total units of raw materials needed,$289,500,,312,000,,293,250,,685,500,],[$Less: Units of beginning raw materials inventory,$102,750,,108,500,,80,250,,102,750,],[$Units of raw materials to be purchased,,,,,,,,$]]$

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