Bush Tea Brands as we know produces two (2) products, Bissy tea and Cerasee tea. The following sales forecast for both products was decided on for the first quarter of the year January - March 2015:

Details	Jan	Feb	Mar	Total
Bissy tea	6,200	5,800	5,600	17,600
Cerasee tea	9,000	7,000	5,000	21,000

Notes:

(a) The company planned to sell both Bissy tea and Cerasee tea for $100 each.

(b) The sales forecast for April is 4,300 units of Bissy tea and 3,000 units of Cerasee tea.

(c) The closing stock level for both products at the end of each month is to be held at a level equal to twenty five percent (25%) of the budgeted sales for the next month.

(d) Management also estimates a monthly deterioration of 7 units of Bissy tea, 12 units of Cerasee tea, 15 units of Material X and 10 units of Material Y. They have suggested that a provision should be made for these items deterioration in factory.

(e) To make one unit of Bissy tea three (3) units of raw material X are required, while four (4) units of raw material Y are required to make one unit of Cerasee tea. The cost of raw material X is $10 per unit, while the cost of raw material Y is $25 per unit.

(f) Closing raw material stocks in units in store at the end of each month is to be equivalent to twenty percent (20%) of the forecasted sales for the preceding month. Budgeted sales for the last two (2) months of 2014 were:

Details	Nov 2014	Dec 2014
Bissy tea	1,200	1,800
Cerasee tea	4,000	3,000

Required:

(a) The sales budget for both products. (5 marks)

(b) The production budget for both products. (20 marks)

(c) The direct raw materials usage budget for both products. (5 marks)