Chitoshi Ltd is a small company that manufactures sportswear. Its financial director is considering setting up a budgeting system. As a starting point he needs to decide on monthly production levels for the first three months of 2019. However, for the first three months of 2019 production will be constrained by a lack of direct labour. Because of building works in the factory Chitoshi is unable to carry any month end stock of finished goods or raw materials in the first quarter of the year. There will be no opening stocks at the beginning of January. After the first three months of 2019 direct labour will no longer be a constraint, due to recruitment of more workers. Building work will also be complete and the firm will once again be able to carry stock. The company expects to be able to sell 15,000 shirts in April 2019. Sales volumes are expected to grow at 2% per month cumulatively thereafter throughout 2019. The following additional information is available. 1. The company intends to carry a stock of finished garments sufficient to meet 40% of the next month's sales. 2. The company intends to carry sufficient raw material stock to meet the following month's production. 3. Estimated costs and revenues per shirt are as follows: per shirt Sales price. ($30) Raw materials Fabric at $12 per square metre. ($12) Dyes and cotton ($3) Direct labour at $8 per hour. ($4) Fixed overheads at K4 per hour. ($2) Profit. $9 Required: Prepare the following budgets on a monthly basis for each of the three months July to September 2019: (i) A sales budget showing sales units and sales revenue; (ii) A production budget (in units) (iii) A fabric purchases budget (in square metres). (iv) Labour hours and cost budget