(c) Littleton Co. Ltd has prepared the following sales schedule (in units) for the next four quarters: Q1: 3000 Q2: 4000 Q3: 6000 Q4: 2000 Production policy requires production to meet the current quarter's sales plus 25% of the following quarter's sales. The process requires one raw material input at the rate of 2kg per unit of product. The current cost of the raw material is $3/ kg but this is expected to increase by 5% at the beginning of the second quarter. Raw materials inventory policy requires that purchases cover current needs and provide for 10% of the next quarter's production needs. At the beginning of the first quarter both finished goods and raw materials inventory balances are expected to be at the required policy levels. Required: Prepare the production budget for the rst two quarters and the raw materials purchases budget (units and dollars) for the rst quarter. (4 marks)