QUESTION 1 (12 marks; 21.6 minutes) Shamokin Manufacturing produced two products, Big and Bear. Shamokin expects to sell 20 000 units of Big and 10 000 units of Bear. Shamokin plans on having an ending inventory of 4 000 units of Big and 2 000 units of Bear. Currently Shamokin has 1 000 units of Big in inventory and 800 units of Bear. Each product requires two labour operations: moulding and polishing Product Big requires an hour and a half of moulding time and half an hour of polishing time. Product Bear requires three hours of moulding time and two hours of polishing time. The direct labour rate for moulders is R20 per moulding hour, and the direct labour rate for polishers is R25 per polishing hour. Required: 1.1. Prepare a direct labour budget in hours and rands for each product. (12) QUESTION 2 (8 marks; 14.4 minutes) The following information pertains to Amigo Corporation: Month Sales Purchases July R10 000 R30 000 0 August 16 R12 000 R34 000 R14 000 R38 000 September October R16 000 R42 000 November le R48 000 R18 000 R60 000 December IF R20 000 Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required: 2.1 Prepare a summary of cash payments for the 4th quarter. 1400 - 235 18000 - 360