I. Learheruth Inc. Budget A. Prepare the following: a. Sales Budget in Peso b. Production Budget c. Purchase cost budget d. Direct Labor Cost Budget e. Cost of Ending Inventory B. Prepare the Projected Income Statement Data: The future sales and budget requirements of Leatheruth Inc. are stated below: 1. Anticipated sales is 50,000 units. Selling Price is P500 per unit. The desired inventory on December 31, is 15,000 units. At the beginning of the period 1/2 of the desired ending inventories are available. 2. Two materials are required for production. Stock 1 and stock 2. Stock 1 can be purchased by piece while the latter can be purchased by kilogram. One piece of stock 1 is needed to produce one finished unit while a finished unit needs one-fourth of a kilo of stock 2. The cost of stock 1 is P3 per piece while one kilogram os stock 2 cost P5.00 3. The inventories of this materials are: Jan. 1 5,000 Dec. 31 7,000 pcs Stock 1 Stock 2 1,000 1,500 kilos 4. 5 hours are needed to complete production of each items. Hourly wage rate is P67.50 5. Factory overhead cost per unit is P20 6. Operating Expenses are estimated to be 30% based on sales. 7. it is assumed that increase in sales in the following year has an increase of 10%