Assume that, X Company is a manufacturing business which predicts during year 2017 January sales to be 100,000 units; sales are expected to increase by 20,000 units each month. The selling price is $10. The management wants ending inventory to be equal to 10% of the next month's budgeted sales units. On December 31 2016, 10,000 units were on hand. X Company uses 2 Kilo grams of materials to produce one unit of product Management wants material on hand at the end of each month to be equal 10% of the following month's production needs. December 31 2016, 14,400 K. Gs of material were on hand. Material cost is $3 per Kilo gram. March production needs from direct materials = 284,000K.G.gs. Each unit of final product requires 21 minutes direct labour hours to be produced. The normal wage rate per direct labour hour is $ 12 per hour. Required: 1) Prepare sales budget for the first two months of 2017. 2) Prepare cash collections budget for the first two months of 2017. Assuming the company collection policy stated that, 40% will be collected in the month of sale, while the remaining 60% will collected during the next month. The amount of budgeted sales during December 2016 is $ 800,000 3) Prepare production budget for the first two months of 2017. 4) Prepare direct materials purchases budget for the first two months of 2017. 5) Prepare direct labour cost budget for the first two months of 2017. Assuming that employees are guaranteed to be paid for at least 2,600 hours each quarter. Each hour worked in excess of 35000 hours is payable additional 50% of the normal hourly wage rate per direct labour hour