work Saved Help Save Ch Pearl Products Limited of Shenzhen

work Saved Help Save & Ch 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 now is planning raw materials needs for the third quartet 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 25% of the next month\'s sales. The finished goods inventory on June 30 is budgeted to be 13,250 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 63,.375 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 Hovember December Budgete Unit Sale 41,800 46,880 56,608 36,808 26,800 16,800 Required: 1. Prepare a production budget for Supermix for the months July, August. September, and O 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July. August, and Septem Dell Update 1 update is re Details Prev 1 of 4 Next > Install n

Solution

1

Prodcution Budget

2

Direct Material Budget

	July	August	September	October
Budgeted Unit Sales	41000	46000	56000	36000
Add Ending Finished Goods	14500	17000	12000	9500
Total Needs	55500	63000	68000	45500
Less Beginning Finished Goods13250		14500	17000	12000
Required Production in Units	55500	48500	51000	33500