Farisha Berhad produces two types of air fresheners: Mango Freshener and Lavender Freshener. Both products are sold in 250 ml bottles. Mango sells for RM3.00 per bottle and Lavender sells for RM3.50 per bottle. Projected sales (in bottles) for the coming four quarters are as follows:

	Mango	Lavender
First quarter 2021	80,000	100,000
Second quarter 2021	110,000	100,000
Third quarter 2021	124,000	120,000
Fourth quarter 2021	140,000	140,000
First quarter 2022	90,000	110,000

The vice president of sales believes that the projected sales are realistic and can be achieved by the company.

Required:

i) Prepare a sales budget for each quarter of 2021 and in total for the year 2021. Show sales by product and in total for each time period.

ii) How will Farisha Berhad use this budget?

iii) Suppose the beginning inventory of Mango Freshener on 1 January 2021 was 4,000 bottles. The companys policy is to have 10% of the next quarters sales of Mango Freshener in ending inventory. Beginning inventory of Lavender Freshener on 1 January 2021 was 6,400 bottles. The companys policy is to have 20% of the next quarters sales of Lavender Freshener in ending inventory. Prepare a production budget for each product by quarter for 2021 and in total for the year 2021.