3. INC 2601 August 2021 QUESTION 2 Identify which of the following Master budget concepts are operating budget and financial budget: 2.1 Sales budget (1) 2.2 Production budget (with sub-budgets: direct materials budget, direct labour budget, manufacturing overhead budget) (1) 2.3 Selling and administrative budget (1) 2.4 Budgeted income statement (1) 2.5 Capital expense budget (1) 2.6 Cash budget (1) 2.7 Budgeted balance sheet (1) A cost and management inventory report for a production company as at 31 July 2021 shows the following: Units 560 Expected sales in units in the next year Desired units of ending inventory (at 5% of sales) 33 Units in beginning inventory 12 You are required to: 2.8 Calculate the number of units to be produced in the year. (3) [10] QUESTION 3