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.

Required:

Prepare a production budget for Supermix for the months July, August, September,

and October.

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.