PART C (25 points) 1.On January 1, 2020, Shagra Corporation's accounting office provided the following data for the 6 months ending June, 2020 Sales units: First Quarter 5,000 units Second Quarter 6,000 units Third Quarter 7.000 units Ending raw materials inventory 40% of the ned quarter's production requirements Ending finished goods inventory: 25% of the next quarter's production requirements Third-quarter 2020 production 7.200 units The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. Three kilograms of raw materials are required to make each unit of finished goods. Rew materials purchased are expected to post 54 per kilogram Required 6) Prepare a production budget by gunes (first two quarters) for the oth period ended June 30, 2020 (4 points) (b) Prepare a direct materials budget by quarters for the period ended June 30, 2020. (open) 2. Saha Lad's budgeted sales and direct materials purchases are as follows Bedsted Sales Jana Badected Diret Materials Purchases 5200000 $30,000 February 220.000 36,000 March 250.000 8000 Sahil's sales are 30% cash cdit. Crails are collected 10% is the month of sale. So in the month following sale, and in the second flowing se Sahl's purchases are 50 cach, 50% om ent. Purchases on contre paid in the purchase, und 20% in the month following Required Prepare a schedule of expected collections from customers for March (6 points) (6) Prepare a schedule of expected payment for det materials for Munch (c) Rifat Shah is an accounting trainee at Sabil Lad. He does not understand what is meant by "budgetary slack. By providing appropriate comples, explain to Riffat the meaning of budgetary slack and the incentive and motives as to why managers may have to create budgetary slack (5 points)