Question

Pearl Products Sherchen China, manufactures and distributes toys throughout So e The cubic centimeters of solve 300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw material needs for the third quarter the quarter in which peak sales of Supermocu Toknep production and sales moving smoothly, the company has the following inventory requirements plus 20% of the month's The freshed goods inventory on June 30 is budgeted to a. The finished goods mentory on hand at the end of each month must be equal to 3.000 units of Superm The raw materials inventory on hand at the end of each oth must be calle d the following buted to be 90,000 of solvent 300 The company is no work in process o ries is production needs for The raw materials inventory on June 30 is As budget for up for the last six months of the year follows 1 pare a production budget for ute b and Odober Do more with Micro Edge - the fastnew browser built for Windows 10 Change my dealt Denta x is type here to search DELL

Answer 1

1
Pearl Products Limited
Production Budget
	July	August	September	October
Budgeted unit sales	71000	76000	86000	66000
Add: Desired units of ending finished goods inventory	18200	20200	16200	14200
Total needs	89200	96200	102200	80200
Less: Units of beginning finished goods inventory	17200	18200	20200	16200
Required production in units	72000	78000	82000	64000
3
Pearl Products Limited
Direct Materials Budget
	July	August	September	Third Quarter
Units of raw materials needed to meet production	216000	234000	246000	696000
Add: Desired units of ending raw materials inventory	117000	123000	96000	96000
Total units of raw materials needed	333000	357000	342000	792000
Less: Units of beginning raw materials inventory	90000	117000	123000	90000
Units of raw materials to be purchased	243000	240000	219000	702000