ACMilan Ltd. has the following budgeted sales for the selected six-month period: Month June July August September October 15,000 20,000 35,000 25,000 30,000 20,000 There were 7,500 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished product equal to 20 per cent of the unit sales for the next month. Three kgs of materials are required for each unit produced. Each kg of material costs 20. Inventory levels for materials equal 30 per cent of the needs for the next month Materials inventory on June 1 was 5,000 kgs. Requirement a) Prepare the production budgets in units for July and August. b) Prepare a purchases budget in units and monetary values for July and August. c) Critically discuss how budgets can be used as a basis to assess a company's 10 Marks 15 Marks performance 5 Marks Total 30 Marks