Other direct production expenses, including labour, are £6 per unit of production. These will be paid in the month concerned.

Various production overheads, which during the period to 30 June had run at £1,800 a month, are expected to rise to £2,000 each month from 1 July to 31 October. These are expected to rise again from 1 November to £2,400 a month and to remain at that level for the foreseeable future. These overheads include a steady £400 each month for depreciation.

Overheads are planned to be paid 80 per cent in the month of production and 20 per cent in the following month.

To help to meet the planned increased production, a new item of plant will be bought and delivered in August. The cost of this item is £6,600; the contract with the supplier will specify that this will be paid in three equal amounts in September, October and November.

Raw materials inventories are planned to be 500 units on 1 July. The balance at the bank on the same day is planned to be £7,500.

Required:

(a) Draw up the following for the six months ending 31 December:

(i) A raw materials inventories budget, showing both physical quantities and financial values.

(ii) A trade payables budget.

(iii) A cash budget.