Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020:

Details	Q1	Q2	Q3	Q4	Total
GK320	6,500	5,200	5,500	4,000	21,200
GK340	4,800	4,600	4,500	3,700	17,600

Notes:

(a) The company planned to sell both GK320 and GK340 for $50 each.

(b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340.

(c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter.

(d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320.

(e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the cost of raw material B is $15 per unit.

(f) Closing raw material stocks in units in store at the end of each quarter is to be equivalent to twenty five percent (25%) of the forecasted sales for the preceding quarter. Budgeted sales for the last period of 2019 were: GK320, 5,000 units and GK340 2,500 units.

(g) At the start of 2020 there were 2,500 units of raw material A and 2,100 units of raw material B in store.

Required:

(a) The sales budget for both products for 2020.

(b) The production budget for both products for 2020.

(c) The direct raw materials usage budget for both products for 2020.

(d) What is meant by a principal budget factor and explain why it must be identified.

(e) Why must the information produced by the management accountant be concerned with the future as well as to reflect economic reality?