Month Sales (units) Sales 1 5,000 100,000 2 6,000 120,000 7,000 140,000 6,500 130,000 Closing inventory of finished goods should be 25% of the following month's forecast sales One unit of Omicron 4 is made from 1.5kg of material Each kg cost 4 Inventory of material at the beginning of Month 1 is 3,000 kg This should be increased by 200 kg each month One unit of Omicron 4 takes 30 minutes to manufacture Each employee is paid 10 per hour worked Variable overheads cost 2 for each labour hour worked Each unit of finished goods at the beginning of Month 1 cost 12.90 Fixed production overheads are 5,000 per month Non-production overheads are 7,000 per month Required: For months 1 to 3: a) Calculate units to be produced and the finished good inventory for each month b) Calculate the material usage each month in kg and c) Calculate the material purchases each month in kg and d) Calculate the labour budget each month in hours and e) Calculate the variable overhead budget each month in f) Prepare an operating budget for Month 1