iv. Finished goods inventories. Inventories of finished goods are expected to be 4,000 units at 1 July. The business's policy is that, in future, the inventories at the end of each month should equal 20 per cent of the following month's planned sales requirements.v. Raw materials inventories. Inventories of raw materials are expected to be 4,000 kg on 1 July. The business's policy is that, in future, the inventories at the end of each month should equal 50 per cent of the following month's planned production requirements. Each Product Z requires 0.5 kg of the raw material, which costs RM2.2/kg. Raw materials purchases are paid in the month after purchase.vi. Labor and overheads. The direct labor cost of each Product Z is RM0.80. The variable overhead element of each Product Z is RM0.50. Fixed overheads, including depreciation of RM2,500, total RM16,700 a month. All labor and overheads are paid during the month in which they arise.vii. Corporate income taxes are approximately RM4,500 and will be paid in August.viii. UVW maintains a minimum cash balance of RM20,000. In case of a deficiency, loan is obtained at 8% annual interest rate on the first day of the period. The interest expense must be paid at the end of the next month.Required:Prepare the following budgets:a) Finished inventories budget (expressed in units of Product Z) for each of the three months July, August and September.b) Raw materials inventories budget (expressed in kilograms of the raw material) for the two months July and August.c) Cash budget for August and September.

UVW Ltd manufactures one product line - Product Z. Sales of Product Z over the next few months are planned to be as follows: i. Cash in hand. At 1 August the business plans to have a bank balance (in funds) of RM21,000. ii. Demand Month Units July 18,000 August 24,000 September 22,000 October 18,000 Each Product Z sells for RM3. iii. Receipts from sales. Credit customers are expected to pay as follows