Question: I am confused why these amounts are wrong Exercise 8-10 (Algo) Production and Direct Materials Budgets (L08-3, L08-4) Pearl Products Limited of Shenzhen China, manufactures

I am confused why these amounts are wrong
I am confused why these amounts are wrong Exercise 8-10 (Algo) Production
and Direct Materials Budgets (L08-3, L08-4) Pearl Products Limited of Shenzhen China,

Exercise 8-10 (Algo) Production and Direct Materials Budgets (L08-3, L08-4) 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 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18,250 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 87,375 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 July 57,000 August 62,000 September 72,000 October 52,000 November 42,000 December 32,000 Required: 1. Prepare a production budget for Supermix for the months July August September, and October. 3. Prepare a direct materiais budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 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. CC Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Loss: Units of beginning raw materials inventory Units of raw materials to be purchased Pearl Products Limited Direct Materials Budget July August 58,250 64,500 3cc 3 174.750 193,500 96,750 100,500 271,500 294,000 (87,375) (96.750) 184,125 197.250 September 67.000 3 cc 201,000 74,250 275,250 (100,500) 174,750 solo o Third Quarter 189.750 3 569,250 271,500 3 840,7503 (284,625) 556,125 BOO

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