How to do Q1 parts a,b,c,d,e and f

Question 1 A Cork based company set up during the pandemic produce HydroSalv, a natural alternative to chemical-based hand sanitizers. You have been asked to assist the management accountant prepare the budgets for the last quarter of 2022 (October to December) and have been given the following information: 1. Forecasted sales are as follows: October November December July Sales (bottles) 6,450 6,5 70 7,530 7,820 2. The cost to produce one bottle of HydroSalv is as follows: Quantity per bottle Cost per bottle Tea tree oil and lavender essence gel 25 ml. 0.30 Recycled plastic bottles (300 ml.) 1 bottle 0.10 Direct labour (12 per hour) 0.05 hrs. 0.60 Variable production overhead 0.80 1.80 3. Tea tree oil and lavender essence gel is imported at a cost of 12 per litre. The management accountant expects to have 40 litres in inventory on 1 October and plans increase inventory levels by 5 litres per month until the end of the year. 4. The company's policy is to hold 1,000 recycled plastic bottles at the end of each month. Given the increase in projected sales, the management accountant plans to increase inventory holding levels by 500 bottles in both November and December. 5. The company expects to sell HydroSalv for 3.50 per bottle and to have 1,470 bottles in inventory at the beginning of October. Projected closing inventory of HydroSalv are as follows: 2022 October 1,500 bottles November 2,250 bottles December 3,000 bottles 2023 January 3,750 bottles Requirement: For each of the three months in the last quarter of 2022 (October to December): (a) Prepare a sales budget in units and E. 2 marks (b) Prepare a production budget in units. 4 marks (1:) Prepare a material purchases budget (units and ), for each material. 7 marks (d) Prepare a direct labour cost budget. 3 marks (e) Prepare a variable production overhead cost budget. 2 marks (1) Prepare a budgeted prot and loss account for the last quarter based on your calculations in parts (a) to (e) above. 4 marks