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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimetPearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimet

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Pearl Products Limited
Production budget
July August September October
Units to be sold 35000 40000 50000 30000
Desired Ending Finished Inventory 11000 13000 9000 7000
Total Units needed 46000 53000 59000 37000
Less : Beginning Finished Inventory 10000 11000 13000 9000
Units to be Produced 36000 42000 46000 28000

.

Pearl Products Limited
Direct Materials Budget
for the month of------
July August September Third Quarter
Budgeted production (units) 36000 42000 46000 124000
Materials requirements per unit 3 3 3 3
Materials needed for production (cc) 108000 126000 138000 372000
Budgeted ending inventory (cc.) 63000 69000 42000* 42000
Total materials requirements (cc.) 171000 195000 180000 414000
Beginning inventory (cc.) 54000 63000 69000 54000
Materials to be purchased (cc.) 117000 132000 111000 360000

*28000 x 3 x 50%

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