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pearl products

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimete
Required: 1. Prepare a production budget for Supermix for the months July August, September, and October 3. Prepare a direct
Required: 1. Prepare a production budget for Supermix for the months July August September, and October 3. Prepare a direct m
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Answer #1
1
Pearl Products Limited
Production Budget
July August September October
Budgeted unit sales 35000 40000 50000 30000
Add: Desired units of ending finished goods inventory 11000 13000 9000 7000
Total needs 46000 53000 59000 37000
Less: Units of beginning finished goods inventory 10000 11000 13000 9000
Required production in units 36000 42000 46000 28000
3
Pearl Products Limited
Direct Materials Budget
July August September Third Quarter
Required production in units of finished goods 36000 42000 46000 124000
Units of raw materials needed per unit of finished goods 3 3 3 3
Units of raw materials needed to meet production 108000 126000 138000 372000
Add: Desired units of ending raw materials inventory 63000 69000 42000 42000
Total units of raw materials needed 171000 195000 180000 414000
Less: Units of beginning raw materials inventory 54000 63000 69000 54000
Units of raw materials to be purchased 117000 132000 111000 360000
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