Question 2 (20 marks) Fun Pte Ltd is in the business of manufacturing vacuum cleaners. The company is preparing budgets for the new financial ycar, 2020 . The following data has been collected from various departments for the purpose of budgeting for the new financial year, 2020. The company manufactures two product models of vacuum cleaners, that is, So-Clean and So-Easy. The projected sales for the next five quarters are as follows: Additional information: 1. The estimated unit selling price is $300 for So-Clean model and $500 for So-Easy model. 2. A desired ending inventory is planned at the end of each period to be equivalent to 20% of the following quarter's sales target. The opening inventory balance in 2020 for So-Clean is 300 units and for So-Easy is 200 units. 3. Direct material, So-001 is a common component for both models. For every one unit of So-Clean or So-Easy, 3 units of So-001 is required. Each unit of So-001 costs $25. The desired ending material inventory is planned at the end of each period to be equivalent to 10% of the following quarter's raw materials needed for production. There is no opening material inventory for So-001. Required: (a) Prepare the sales budget for So-Clean and So-Easy (show separately) for each of the FOUR (4) quarters of 2020. (4 marks) (b) Prepare the production budget in units for each of the FOUR(4) quarters of 2020 for the product model So-Clean only. (8 marks) (c) Based on the production budget prepared in (b) for So-Clean only, prepare a purchases budget in units and in dollars for direct materials, So-001 for the first and second quarters of 2020. (8 marks) Prate 4 of 10