- Pearl Products Limited Of Shenzhen China Manufactures And Distributes Toys Throughout South East Asia Three Cubic Cen 1 (54.34 KiB) Viewed 28 times
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- Pearl Products Limited Of Shenzhen China Manufactures And Distributes Toys Throughout South East Asia Three Cubic Cen 3 (41.59 KiB) Viewed 28 times
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 4,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 11,800 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 60,000 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. Budgeted Unit Sales 39,000 44,000 54,000 34,000 24,000 14,000 July August September October November December Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. 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.
Complete this
question by entering your answers in the tabs below. Required 11 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July Budgeted unit sales Total needs Required production in units August Required 2 September October
Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September total. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Pearl Products Limited Direct Materials Budget July Units of raw materials to be purchased СС August со September Со Third Quarter 8