a The finlshed goods Inventory on hand at the end of each month must equal units of Supermix plus of the next month's
sales. The finlshed goods Inventory on June is budgeted to be units.
b The raw materlals Inventory on hand at the end of each month must equal onehalf of the following month's production needs for
raw materlals. The raw materlals inventory on June is budgeted to be of solvent
c The company maintains no work in process Inventorles.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
Required:
Prepare a production budget for Supermix for the months July, August, September, and October.
Prepare a direct materlals budget showing the quantlty of solvent H to be purchased for July, August, and September, and for
the quarter in total.
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Required
Prepare a production budget for Supermix for the months July, August, September, and October.