50.1K

Verified Solution

Link Copied!

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 10,000 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 54,000 ec of solvent H30O. c. The company malntains no work in process inventorles. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Required: 1. Prepare o production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materiais 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. 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 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. 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 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

Answer & Explanation Solved by verified expert

See Answer