A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales for the first five months of 2022 have been estimated as:

Month Units

January		210 000
February		180 000
March		210 000
April		220 000
May		200 000

Additional Information:

1. Actual units sold in 2021 November and December were 190 000 and 220 000, respectively.
2. One unit of blitz requires 2 kg of material at $3.50 per kg. iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour.

4. Based on past experience, 60% of cash is received in the month of sale, 25% the following month, 10% two months after and 5% is usually irrecoverable.
5. Selling price is $18 per unit. vi. The company intends to have finished stock at the end of each month equivalent to 15% of the following months budgeted sales. The policy regarding stock of raw materials is to have 25% of the following months production requirements.

vii. Stocks at 2022 January 01 are estimated to be 22 000 units of finished goods and 104 000 kg of raw materials.

Produce, for 2022 January, February and March:

1. production budget in units. (3 marks)

2. raw materials purchased budget. (7 marks)

3. a direct labour budget. (3 marks)

4. a cash collection schedule for sales. (7 marks)