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Q8.5 XY Ltd plans to sell the following: June July August September October Product A (units) 1200 1800 2800 3200 3200 Stock of finished goods at 1 June was 240 units and the company's stockholding policy is for the finished goods stock at the end of each month to represent 20% of the following month's sales requirement. Each unit of product A uses two units of a component X1. On 1 June there were expected to be 264 units of X1 in stock. The desired closing stock of X1 is 10% of the next month's production. Each unit of component X1 costs 5. Each unit of product A requires 6 of labour. Fixed administration overheads in each month are budgeted to be 5000 (and include a charge of 1000 depreciation). Product A can be sold for 26 each. Labour and fixed overheads are paid in the same month. Trade receivables (trade debtors) take two months to pay and the company pays its trade payables (trade creditors) after one month. The opening cash balance is 10,000. Required: (i) The production budget (in units) for June, July and August. (ii) The production cost budget for June, July and August. (iii) The raw material purchases budget (in units and Ls) for June, July and August