PARTI (55 possible marks) Rainbow Company manufactures and sells Sports Shoes. Information on budgeted sales in units is given below. Use this information to answer all parts of question one. Month Sales in Units November 2019 10,000 December 2019 12,000 January 2020 8,500 February 2020 12,000 March 2020 12,500 April 2020 7,000 May 2020 8,500 a. The selling price of the sports shoe is AED 125 b. All sales are on account. Based on past experience, sales are collected in the following pattern: Month of sale Month following sale Second month following sale 15% 35% 50% C. The company maintains finished goods inventories equal to 35% of the following month's sales. The beginning inventory of finished goods on January 1st was 2,800 units d. Each Bag requires 6 pounds of raw materials. e. The company requires that the ending inventory of raw materials be equal to 30% of the following month's production needs. The beginning inventory of raw materials inventory was on January 1st was 3,150 units f. The raw material costs $12.50 per pound. g. 80% of a month's purchases of raw materials is paid for in the month of purchase; the remaining is paid for in the following month. h. The accounts payable on December 31st will be $85,000. 3. Prepare a production budget for each of the months January, February, March and April . (10 marks) 4. Prepare a direct materials budget, by month and in total, for the First quarter. (12 marks) 5. Prepare a schedule of expected cash disbursements, by month and in total, for the First quarter. (15 marks)