2. Demin (pvt) Limited manufactures three products, known as Jass, Mass and Vass. The following information is available for 2021. The budgeted sales of Disney Manufacturing (pvt) Limited for 2021 are as follow: Product Sales units Unit selling price Jass 20,000 Rs. 25 Mass 18,000 Rs. 20 Vass 15,000 Rs. 22 The opening stocks at the beginning of the year 2021. Product Production units Material Jass 3,000 M1 Mass 3,000 Vass 2,000 Material units 40,000 M2 50,000 M3 60,000 M4 40,000 M5 10,000 The marketing director intends to run a marketing campaign towards the end of 2021 and has requested that product unit stocks should be increased at the end of 2021 above the commencement stocks by the following: Jass 20% Mass 50% Vass 20% The purchasing director has requested that all components part stocks be reduced by 20% at the end of 2021 because of improved delivery times from suppliers. The product material specification and component cost for each of the products and are as follows: Material M1 M2 M3 M4 M5 Product Cost per 50 cents 35 cents 60 cents 55 cents Rs.1 material unit Jass Mass Vass 3 4 6 2 1 2 3 4 2 1 5 2 3 3 1 The standard labour usage for each product and labour rates are as follows. Jass 2 Hours Mass Vass 4 Hours 3 Hours Standard labor rate per hour is Rs. 2.00 Budgeted cash flows are as follows. Quarter Budgeted sales Budgeted Payment for Other expenses (Rs.) purchases (Rs.) salaries (Rs.) (Rs.) 1 250,000 100,000 100,000 30,000 2 300,000 120,000 110,000 25,000 3 280,000 110,000 120,000 18,004 4 246,250 136,996 161,547 3,409 Cash balance as at 31st December 2020 was Rs.8500. a. You are asked to prepare the sales budget, production budget, material purchase budget, direct labour budget and cash budget for the year ending 31st December 2021. (18 marks) b. Discuss the expected performance of the company at the budget committee meeting. (07 marks)