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 14,800 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 90,000 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. Budgeted Unit Sales July 59,000 August 64,000 September 74,000 October 54,000 November 44,000 December 34,000 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 H300 to be purchased for July, August, and September, and for the quarter in total. Required Required 1 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. Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production 180,000 cc 198,000 cc 210,000 cc Pearl Products Limited Direct Materials Budget July August 60,000 66,000 Third September Quarter 70,000 52,000X 156,000 cc 180,000 198,000 210,000 156,000X Add: Desired units of ending raw 90,000X 105,000 78,000 78,000 materials inventory Total units of raw materials needed 279,000 303,000 288,000 234,000X Less: Units of beginning raw materials inventory 90,000 99,000 105,000 78,000X Units of raw materials to be purchased 189,000 204,000 183,000 156,000X < Required 1 Required 3>