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_l 2. Owly Corporation's Hooded Sweatshirt division is preparing a budget for the coming quarter of April, May, and June. Projected sales for the quarter are as follows: Month Unit Sales April 14,000 May 12,000 June 9,500 Each sweatshirt has two direct materials: fabric and a zipper. Each sweatshirt requires 0.5 square meters of fabric and a single zipper. Owly anticipates the fabric to cost $21 a square meter and a zipper to cost $2 .50. Owly will have 325 square meters of fabric and 610 zippers in inventory at that end of March. Also, at the end of March, Owly will have 715 completed sweatshirts in finished goods. There is no works in process inventory and all sweatshirts worked on in any given day are completed in the same day. Owly has a policy of a desired ending inventory of 5% of next month's sales in nished goods inventory and a desired ending inventory of 5% of next month's production needs for direct materials. July's projected sales are 8,750 sweatshirts and July's projected production is 8,900 sweatshirts. A. Prepare a production budget for each month (April, May, June) for Owly's Hooded Sweatshirt division. [25 Marks] B. Prepare a raw/direct materials budget for each month (April, May, June) for Owly's Hooded Sweatshirt division. Include both the quantity to be purchased and the dollar cost in the budget. [25 Marks] C. Owly pays for 40% of material purchases in the month of purchase and the remaining 60% in the month after the purchase. At the end of March, Owly will have $124,800 in material purchase accounts payable, which will be paid in April. Prepare a cash disbursement for material purchases budget for each month (April, May, June). [25 Marks]