XY Ltd's production and sales budget requires the following number of units to be produced and sold for the following four months of the year. Budgeted production in units Sales in Units Sales in E April 40,000 35,000 875,000 May 35,000 30,000 750,000 June 55,000 50,000 1,250,000 July 60,000 60,000 1,500,000 Eighty percent of the sales are on credit with 45% of customers paying in the month after sale and 55% paying in the 2d month after sale. Sales quantities for March were 20,000 units (500,000). Each unit of production requires 4 kilograms (Kgs) of direct material. XY has a policy of beginning each month with inventory equal to 25% of the following month's direct material requirements. 19. Budgeted cash sales for July would be: a) b) c) 350,000 300,000 250,000 (P 275,000 20. Budgeted cash receipts for May would be: a) b) c) d) E875,000 750,000 E850,000 E685,000 21. Budgeted direct materials purchases for May would be: 220,000 Kgs 140,000 Kgs 195,000 Kgs 135,000 Kgs a) b)