Question 2 Akosua Ltd manufactures a single product. It is preparing monthly budget for six months from July to December 2020. The following standard revenue and cost data is available. Selling price GH12 per unit Materials 2 kg per unit at GH2.4 per kg Labor GH1.8 per unit Direct expenses GH1.2 per unit Sales in June 2020 and July 2020 are forecast to be 10,000 units in each month. As a direct result of marketing expenditure of GHS95,000 in August 2020, sales are expected to be 11,000 units in August 2020 and to increase by 1,000 units in each month from September to December. Sales after December 2020 are expected to remain at the December 2020 level. 25% of sales are paid for when they occur and 75% of sales are paid for in the month following sale. Inventories of finished goods at the end of each month are required to be 20% of the expected sales for the following month. Inventories of materials at the end of each month are required to be 50% of the material required for the following month's production. Materials are paid for in the month following purchase. Labor and direct expenses are paid for in the month in which they occur. Overheads for production, administration and distribution will be GHS34,000 per month, including depreciation of GHS 12,000 per month. These overheads are payable in the months in which they occur. The firm pays interest twice per year, in March and September. The cash balance at the end of June 2020 is expected to be GHS50,000. Required: Prepare the following budgets on a month basis for the six-month period from July to December 2020. a. Production budgets (units) b. Cash Budget