Question 1 JAD Lid. is a business that deals in the production of BITS for sale. The company has been dealing in BITS for the past two years and as such expects the following levels of sales for the next six months in 2022; expected total sales for each month for the first three months is 12,000 in units and 20,000 units each month for the remaining months. Due to recent increase in demand for the BITS, management believes it can sell the product at $40 per unit in the first four months and increase it (price) further by 10% thereafter. The firm's cost of production for a unit of BITS is as followings: Direct material e 10 Direct labour e 10 Production overheads $ 5 Wages will be paid for as they are incurred whereas production overheads incurred are paid for a month later. Suppliers allow for a month's credit for 50% of each month's purchases. Customers are expected to pay goods sold to them on the following terms; 40% in the month of sales, 30% in the second month and the remaining amount in the month following. The inventory policy of the firm in relation to finished goods and inputs are as followings: The stock of finished goods at the end of each month is 15% of planned sales for that month whereas that of input is held constant. The expected opening stock for finished goods is 5,000 units. The constant input unit is 3,000 units. Assume that sales are evenly spread throughout the month and that depreciation expense of two cedis per unit is included in production overheads. You are required to produce for each month for the first six months: i. Sales budgets; (5 Marks) ii. The production budgets; (15 marks) ili. Schedule of payments to suppliers; (4 marks) iv. Schedule of receipts from debtor; (6 marks) V . The cash budget. (10 marks) (Total 40 marks)