Question 1 A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales for the first five months of 2022 have been estimated as: Month Units January 210 000 February 180 000 March 210 000 April 220 000 May 200 000 Additional Information:

i. Actual units sold in 2021 November and December were 190 000 and 220 000, respectively.

ii. One unit of blitz requires 2 kg of material at $3.50 per kg.

iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour. iv. Based on past experience, 60% of cash is received in the month of sale, 25% the following month, 10% two months after and 5% is usually irrecoverable.

v. Selling price is $18 per unit. vi. The company intends to have finished stock at the end of each month equivalent to 15% of the following months budgeted sales. The policy regarding stock of raw materials is to have 25% of the following months production requirements.

vii. Stocks at 2022 January 01 are estimated to be 22 000 units of finished goods and 104 000 kg of raw materials.

A. production budget in units.

B. raw materials purchased budget.

C. a direct labour budget.

D. a cash collection schedule for sales.