Q.1 Budgeting a) J & J Company manufactures Cov19 vaccine, a forecast of the number of doses to be sold in the first six months of 2021 is given below: Month Jan Feb Mar May Jun Doses 5000 6000 10000 8000 9000 4000 It is anticipated that; (i) There was no beginning balance on 1st January (i) There will be no work-in-progress at the end of (iii) The production manager desires to end with 700 doses in the first month and expects to increase it by 200 doses each month. (iv) Budgeted production costs for the period is estimated at $50 per dose. Required i) Prepare a production budget cost for the six months period ending 30th June 2021. I (10 marks) any month. b) J & J Company has continued to make receipts and payment forecasts for the next year. The following estimates are available for the coming period ending 30th April 2022: Month Sales (in doses) Jan 10.000 Feb 12,000 Mar 10,000 Apr 12.000 Additional information Material Purchases (in units). 12,500 15.000 12.500 15.000 Budgeted selling price is $10 per dose Material Purchase price is $5 per unit Monthly operating expenses are budgeted at: Administration OHs is $10,000 per month. Sales commission of 3% will be paid in each month of sale. Indirect wages cost is $9,000 per month. Depreciation of $900 per month and insurance of $6,000 per annum All expenses and purchases are paid in the month incurred unless otherwise specified, Collections from customers are: I 70% in the month of sale 20% in the following month 10% received two months from the month of sale Required: a) Prepare J & J's a cash budget for the four months. Show all the workings (15 marks) Total, 25 marks