#3 Tremor manufactures two products, Winnex and Amora, which use raw materials, BX and DG. One unit of Winnex uses 3 litres of BX and 4 kilograms of DG. One unit of Amora uses 5 litres of BX and 2 kilograms of DG. A litre of BX is expected to cost $3 and a kilogram of DG $7. Sales and finished goods inventory budget for the year 2002 are as follows: Winnex Amora Budgeted Sales 8,000 units Budgeted Sales 6,000 units Opening Inventory 1,500 units Opening Inventory 300 units Closing Inventory 600 units Closing Inventory 600 units Selling Price $200 Selling Price $300 Inventories of raw material are 6,000 litres of BX and 2,800 kilograms of DG at 1 January, 2002 and the company plans to hold 5,000 litres and 3,500 kilograms, respectively, at 31, December 2002. The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as follows. Product Winnex Loss of 50 units Amora Loss of 100 units Raw Materials BG Loss of 500 litres DG Loss of 200 kilograms Required: Prepare the following budgets for the year 2002: (i) Sales (ii) Production (iii) Raw material usage (iv) Raw materials purchase