Problem $7-2$ Preparing Production and Purchases Budgets $($LO$2-$ C

Daisy Products Limited of Shenzhen, China, manufactures and distributes toys througho

Three cubic centimetres $($cc$)$ of solvent Q$80$ are required to manufacture each unit of $Fi$ company is now planning raw materials needs for the third quarter, the quarter in which production and sales moving smoothly, the company has the following inventory require

The finished goods inventory on hand at the end of each month must be equal to $4,2$ month's sales. The finished goods inventory on June $30$ is budgeted to be $14,000$ un The raw materials inventory on hand at the end of each month must be equal to onefor raw materials. The raw materials inventory on June $30$ is budgeted to be $75,600$ The company maintains no work$-$in$-$process inventories.

ales budget for Fineclay for the last six months of the year follows:

$\backslash$table$[[,$Budgeted Sales$],[$in Units,$],[$Hy$,49,000],[$gust$,56,000],[$ptember$,70,000],[$tober$,42,000],[$vember$,28,000],[$Fember$,14,000]]$

ired:

pare a production budget for Fineclay for the months of July to October.