Question 2 Channa Ltd manufactures and sells shoes. It has the following information for its 2022 budget. (1) Sales price of a pair of shoes is $100. (2) Product costs per pair of shoes: Direct materials (2 metres @ $30.00 $15) Direct labour (1 hour @ 15.00) $15.00 Overheads $5.00 (3) Budgeted sales for the second six month period are: Month Number of pairs July 6,000 August 5,500 September 6,500 October 7,000 November 7,000 December 9,000 (4) Inventory policy on desired ending inventory balances: Type Quantities Finished goods 20 % of the pairs required for the next month's sales. Expected balance on 1 July 2022 is 800 pairs. Direct materials 40% of the materials required for the next month's sales. Balance on 1 July 2022 is 3,000 metres. Required: a) Prepare production budgets in units for July, August and September (15 marks) 2022. b) Prepare a purchases budget in metres for July and August 2022, (20 marks) providing total purchases in both metres and dollars for each month. c) Calculate the amount budgeted for cost of goods sold in July 2022. (15 marks)