7.5 Question 3: (16 marks) The ABC Company is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the sales manager for the first half of 2023: January 8,500 units February 9,000 units March 9,500 units April 10,000 units May 12,000 units June 15,000 units Each unit sells for $50, and all sales are on account. History has shown that 30% of credit sales are collected in the month that the sale occurred, 40% of the sales are collected the.' month following the month of sale, 25% of credit sales are collected two months following the month of sale and the remaining 5% is collected in the third month following the sale. The estimated sales for July and August are 16,000 and 16,500 units respectively. ABC Company had 2,000 units in finished goods inventory at the end of March. The department ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales. 309 7 in the month 40 4 next month. 25 % next month Each unit requires 10 kilograms of raw materials to manufacture. Raw materials cost $0.50 per kilogram, and the production department ends each month with enough raw . materials to satisfy 10 percent of the next month's production requirements. The company had 10,400 kilograms of raw materials in its ending raw material inventory at the end of March. Required: a) Prepare the Sales Budget for the quarter ended June 30, 2023. b) Prepare the Production Budget for the quarter ended June 30, 2023. c) Prepare the Raw Material Purchase Budget for the quarter ended June 30, 2023. d) Prepare a schedule showing the cash collections from sales for the quarter ended June 30, 2023: Note: For all the budgets and schedules above, you must show a column for April, May, and June as well as a column for the total of Quarter 2 of the year