Question 3. ABC plc manufactures product X using three different raw materials. The product details are as follows: Selling price per unit $250 Material A 3 kgs Material price $3.50 per kg Material B 2 kgs Material price $5.00 per kg Material C 4 kgs Material price $ 4.50 per kg Direct labour 8 hours Labour rate $ 8.00 per hour The company is considering its budgets for next year and has made the following estimates of sales demand for product X for July to October: July AugustSeptember 400 units 300 units October 600 units 450 units It is the company policy to hold stocks of finished goods at the end of each month equal to 50% of the following month's sales demand, and it is expected that the stock at the start of the budget period will meet this policy. Raw material stocks are expected to be as follow on 1 July: Material A Material B Material C 1,000 kgs 400 kgs 600 kgs Stocks are to be increased by 20% in July, and then remain at their new level for the foreseeable future. You are required to prepare the following budgets for each month of the quarter from July to September inclusive: a) Sales budget in quantity and value. b) Production budget in units. c) Raw material usage budget in kgs. d) Raw material purchases budget for material A in kgs and value