Brightberry Co. produces suction bowls for toddlers. The plan for the next period is as follows: Sale of 8,000 bowls in January, February, and March, and the same number of bowls is expected for April of 2022. The selling price will be $20 per unit. The inventory of silicon (material for suction bowls) on 1 January is 100 kg. The policy is that the ending material inventory amounts to 15% of next month's production requirements. The planned level of Finished Goods inventory on 1 January will be 2,000 units. The company wants to lower its finished goods ending inventory policy not to finance excessive working capital. But to not experience delays in deliveries of their products to customers, it still plans that the ending finished goods inventory each month should be 20% of next month's sales. Monthly selling & administrative expenses are estimated at $15,000 (including $5,000 of depreciation) plus 20% sales for commissions. Budgeted manufacturing costs for January and February 2022 are as below: Direct Materials Direct Labour Variable Manufacturing Overhead 0.2 kg per unit @ $10 per kg 6 minutes per unit @ $20 per hour allocated @$8 per DLH Monthly budgeted fixed manufacturing overhead amounts to $50,000 plus $10,000 of depreciation. 30% of all sales are sold to local shops and are made on credit. They are paid the next month. The remaining sales on Amazon are paid in the month of sale. The company pays half of the purchased materials in the month of purchase and half in the following month. Labour and relevant overhead costs are paid in the month the liability is incurred. Selling and administration expenses are paid each month. At the beginning of February 2022, the company will take a loan in the amount of 50,000 as its cash balance has been diminished because of recent equipment upgrades. The interest rate for the loan will be 6% per annum paid monthly. The principal will be repaid at the end of year 2022. The opening cash balance on 1 February (before the loan drawdown) is planned to be $2,000. REQUIRED (show all your workings): 1. Prepare the following budgets for January and February 2021. (9 marks) i. Production Budget (in units) ii. Material Purchases Budget (in quantities and dollars) 2. Cash Budget for FEBRUARY ONLY. (7 marks) Brightberry Co. produces suction bowls for toddlers. The plan for the next period is as follows: Sale of 8,000 bowls in January, February, and March, and the same number of bowls is expected for April of 2022. The selling price will be $20 per unit. The inventory of silicon (material for suction bowls) on 1 January is 100 kg. The policy is that the ending material inventory amounts to 15% of next month's production requirements. The planned level of Finished Goods inventory on 1 January will be 2,000 units. The company wants to lower its finished goods ending inventory policy not to finance excessive working capital. But to not experience delays in deliveries of their products to customers, it still plans that the ending finished goods inventory each month should be 20% of next month's sales. Monthly selling & administrative expenses are estimated at $15,000 (including $5,000 of depreciation) plus 20% sales for commissions. Budgeted manufacturing costs for January and February 2022 are as below: Direct Materials Direct Labour Variable Manufacturing Overhead 0.2 kg per unit @ $10 per kg 6 minutes per unit @ $20 per hour allocated @$8 per DLH Monthly budgeted fixed manufacturing overhead amounts to $50,000 plus $10,000 of depreciation. 30% of all sales are sold to local shops and are made on credit. They are paid the next month. The remaining sales on Amazon are paid in the month of sale. The company pays half of the purchased materials in the month of purchase and half in the following month. Labour and relevant overhead costs are paid in the month the liability is incurred. Selling and administration expenses are paid each month. At the beginning of February 2022, the company will take a loan in the amount of 50,000 as its cash balance has been diminished because of recent equipment upgrades. The interest rate for the loan will be 6% per annum paid monthly. The principal will be repaid at the end of year 2022. The opening cash balance on 1 February (before the loan drawdown) is planned to be $2,000. REQUIRED (show all your workings): 1. Prepare the following budgets for January and February 2021. (9 marks) i. Production Budget (in units) ii. Material Purchases Budget (in quantities and dollars) 2. Cash Budget for FEBRUARY ONLY. (7 marks)