Q #02) A) What is cash budget, sales budget and production budget? (02 Marks) B) The Noodles Canning Company produces frozen and condensed soup products. Frozen soups come in three principal varieties: snapper, shrimp, and pea. The condensed soups come in two principal varieties: tomato and chicken noodle. The Sales Division prepared the following tentative sales budget for the first six months of the coming year: PRODUCT BUDGETED FOR SALES Frozen soups: Snapper Shrimp Pea...... 250,000 cans 150,000 350,000 Condensed soups: Tomato...... 1,000,000 Chicken noodle. 750,000 The following inventory levels have been decided upon: WORK IN PROCESS FINISHED GOODS Beginning Ending Units Units Beginning Ending Units % Processed Units % Processed Frozen soups: Snapper. 5,000 80 4,000 75 Shrimp..... 3,000 70 3,000 75 Pea..... 4,000 75 5,000 80 Condensed soups: Tomato....... 25,000 60 40,000 75 Chicken noodle 15,000 60 25,000 80 Required: A production budget for the six-month period. 15,000 8,000 20,000 20,000 5,000 20,000 60,000 75,000 30,000 (10 Marks) 20,000