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Daisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimetres (cc) of solvent Q80 are required to manufacture each unit of Fineclay, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineclay occur.
To keep production and sales moving smoothly, the company has the following inventory requirements:
A sales budget for Fineclay for the last six months of the year follows:
Budgeted Sales in Units
July 52,500
August 60,000
September 75,000
October 45,000
November 30,000
December 15,000
Required:
Problem 1. production budget for Fineclay for the months of July to October.
Problem 2. This part of the question is not part of your Connect assignment.
Problem 3. budget showing the quantity of solvent Q80 to be purchased for July, August, and September, and for the quarter in total.
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