Gadget Ltd manufactures one product known as Widget. The following information relates to the preparation of the budget for the year ended 31 March 20x4: Sales budget details for product Widget: Expected selling price per unit R100 Expected sales in units 10 000 All sales are on credit terms. Raw materials: Widget requires five units of raw material S and 10 units of raw material O. S is expected to cost R3 per unit and O R4 per unit. All goods are purchased on credit terms. Departments involved: Two departments are involved in producing Widget, namely the machinery and the assembly departments. The following information is relevant Direct labour hours Direct labour rate per unit of product per hour Machinery 1 R6,00 Assembly 0.5 R8,00 Additional information 1. The production overheads for the budget period are expected to amount to R50 000 in the machinery department and R50 000 in the assembly department. 2. Overheads are absorbed into finished products on the basis of labour hours. 3. At 1 April 20x3 stocks were as follows: Product Widget 800 units Raw material S 4 500 units Raw material o 12 000 units All stocks at 31 March 20x4 are expected to increase by 10%. Required Prepare the following budgets for Gadget Ltd for the year to 31 March 20x4: 1.1 Sales budget (in units and rands) 1.2 Production budget 1.3 Material usage budget in units