i. Prepare all the functional budgets for the month of July.ii. Prepare the projected income statement and statement of financial position extract for themonth of July 2020.iii. Assuming the company allows a one month 5% credit facility to its customer and accepts10% credit facility from suppliers, prepare a cash budget for July 2020.

The sales and production details of Eyram manufacturing Ltd. for July, 2020 are summarised as follows: Estimated sales: Product K: 40,000 units at GH$30.00 per unit Product L: 20,000 units at GHe65.00 per unit Estimated inventories, July 1, 2020: GHe Material A: 4,000 kgs. Product K: 3,000 units at GH@17 per unit 51,000 Material B: 3,500 kgs. Product L: 2,700 units at GHe35 per unit 94,500 Total 145,500 There were no work in process inventories estimated for July 1, 2020. C. Desired inventories at July 31, 2020: Material A: 3,000 kgs. Product K: 2,500 units at GHe17 per unit 42,500 Material B: 2,500 kgs. Product L: 2,000 units at GH$35 per unit 70,000 Total 112,500 There were no work in process inventories desired for July 31, 2020. d. Direct materials used in production: Product K Product L Material A: 0.7 kgs. per unit 3.5 kgs. per unit Material B: 1.2 kgs. per unit 1.8 kgs. per unit e. Unit costs for direct materials: Material A: GH 4.00 per kg. Material B: GH$2.00 per kg. f. Direct labour requirements: Department 1 Department 2 Product K 0.4 hour per unit 0.15 hour per unit Product L 0.6 hour per unit 0.25 hour per unit g. Department 1 Department 2 Direct labour rate GH@ 12.00 per hour GH@16.00 per hour . Estimated factory overhead costs for July: GHe Indirect factory wages 200,000 Depreciation of plant and equipment 40,000 Power and light 25,000 Indirect materials 34,000 299,000 Total