Question 1: Blue Company which is based on Dammam manufactures and sells product SKY. The following data are available for preparing budgets for product SKY for the first 2 quarters of 2023: 1. Sales: quarter 1, 40,000 units; quarter 2, 60,000 units. Selling price is SAR100 per unit. 2. Direct materials: each unit of product SKY requires 5 pounds of material at a cost of SAR5 per pound. 3. Desired inventory levels: Type of Inventory Finished goods (units) Material (pounds) January 1 April 1 10,000 20,000 July 1 30,000 40,000 48,000 60,000 4. Direct labor: direct labor time is 2 hours per unit at an hourly rate of SAR10 per hour. 5. The manufacturing overhead budget shows expected costs to be 120% of direct labor cost. 5. Selling and administrative expenses are expected to be SAR10 per unit of sales plus SAR200,000 per quarter. 6. Interest expense is SAR50,000. 7. Income taxes are expected to be 20% of income before income taxes. Required: Prepare the following operating budgets by quarters: Sales Budget Production Budget o Direct Materials Budget o Direct Labor Budget Selling and Administrative Budget Show the budgeted standard cost sheet. And prepare the budgeted income statement for the first 6 months.