Pharmacare Sdn Bhd manufactures two products namely PMed and Astrax. The following information applies to the budget preparation for the year ending 31 December 2021. All inventories are to be reduced by 15% from their opening levels by the end of 2021. i. The selling price of a unit of PMed and Astrax is RM430 and RM550 respectively. The sales forecast for PMed is 31,200 units and Astrax is 18,000 units. ii. The inventories of finished goods and raw materials on 1 January 2021 are expected to be as per the following: PMed 2,100 units @ RM 350 per unit Astrax 1,500 units @ RM 400 per unit Material R 20,000 kgs @ RM 5.40 per kg Material S 16,000 kgs @ RM 7.40 per kg iii. The following raw materials and skilled labour are required in order to produce a unit of PMed and Astrax: PMed Astrax Material R 16 kg 12 kg Material S 14 kg 9 kg Skilled labour 10 hours 11 hours CONFIDENTIAL AC/JUNE 2021/TEST 1/MAF551 PLK 2 iv. The expected prices for raw materials and skilled labour rate during 2021 are as per the following: Material R RM 7 per kg Material S RM 9 per kg Skilled labour rate RM 20 per hour Required: For the year ending 31 December 2021, prepare the following budget: i. Production budget showing opening inventory, production and closing inventory. ii. Raw materials purchase budget showing opening inventory, purchases and closing inventory in units and cost iii. Labour budget (hours and RM) (12 marks) b. The benefit of budgeting includes assisting managers to manage resources and creating value for the business. However, if proper procedures and ethics are not adhered to in the preparation of the budget, this will result in a detrimental impact on the company in the long run. Explain TWO (2) behavioural implications of budgeting.