Answer ALL questions. [20 MARKS] Medico Limited is in the process of planning for the 2021 financial year. The company manufactures only one product, viz. Product Med. Your assistance is required in the preparation of budgets and undertaking other calculations. QUESTION 1 (10 Marks) INFORMATION The following information is available to determine the budget requirements of Medico Limited for January 2021: 1. Projected sales of Product Med for January and February 2021 January February 12 000 units at R32 each 15 000 units at R30 each 2. The policy of Medico Limited is to maintain a closing inventory equal to 40% of the budgeted sales of the following month. 3. Two (2) labour hours are required to produce one unit of Product Med and the rate per hour is R10. 4. Overheads are projected at a rate of R3 per direct labour hour. 5. The estimated total production costs per unit (including the costs above) are R40 for January 2021 and R38 for December 2020. REQUIRED Use the information provided above to prepare the following budgets for January 2021: 1.1 Sales Budget (units and Rands) 1.2 Production Budget (units) 1.3 Direct Labour Budget (Rands) 1.4 Overheads Budget (Rands) 1.5 Cost of Sales Budget (Rands) (1 mark) (3 marks) (2 marks) (2 marks) (2 marks)