Big Boss Limited was formed two years ago by Josha Sealers. He had the idea to make a product for Quick Service Restaurants that would be easy and convenient to prepare. He bought several used plant aad equipment from a copany that was igvolved in making a similar product but was leaving the industry. Big Boss estimated that the cquipment would be able to last for 10 years ence it was properly maintaincd. Ile called bis finished product "Gweet". The budget for the next four months ending 31 July 2023 is to be prepared. The following data was gathered: Actual costs per pound of opening raw material inventories are as budgeted for the coming period. [D] The company maintains a policy of holding 5% of the next month's demand for "Sweet" in inventory. The policy for raw materials is to maintain 5% of next month's requirements in inventory. [E] Collection from customers is expected to be as follows: - 90% in the month in which the sales are made - 10% in the first month after the sale [F] 80% of all raw materials purchased are expected to be paid for in the month of parchase with the remaining amount being paid in the following month. [G]Selling and Administrative expenses are expected to be: - Variable 2% of sales revenue - Fixed $100,000 per month including $4,000 for depreciation. [H]Tax payable represents 25% of profit before tax and is paid on March 15 cach year for profit made in the prior year. Profit before tax for the year ended December 31, 2022 was 5600,000 . Required: 1. Prepare the following budgets for Best Friends Preweason Limited by month and in fotal for the four months cnding July 31,2023 : (a) Sales budget. (6 marks) (b) Schedule of cash collected from customers. (10 marks) (c) Production budget. (17 marks) (d) Direct-material usage and purchases budget. (23/ marks) (c) Schedule of cash disbursenent to suppliets for direct material. (10 marks) (f) Direct labour budget. (9\% marks) (g) Production overhead budget. (11 marks) (h) Selling and administrative budget (11 marks) (i) Cash budget (25Y marks) 2. Prepare the following budgets in total only for the four months ending July 31, 2023: (a) Cost of goods sold budget. (8 marks) (b) Budgeted Statement of Profit or Losk. (5 marks) (c) Budgeted Statement of Financial Position (13\% marks)