QUESTION 4 Tanko Ltd is a producer of soft drinks. With the outbreak of Covid-19 pandemic, the company decided to prepare budgets for three months July to September 2020. Budgeted sales for the six months to December 2020 are as follows: July 40,000 units August 100,000 units September 60,000 units October 50,000 units November 30,000 units. December 40,000 units The selling price is GH5 per unit Additional information: i. The management of Tanko Ltd wants ending inventory to be equal to 20% of the following month's budgeted sales in units. On 30 June 2020, 10,000 units were on hand. ii. At Tanko Ltd, 5 kilos of material are required per unit of product Management wants materials on hand at the end of each month equal to 10% of the following month's production. On 30 June, 26,000 kilos of material were on hand. Material cost GH0.50 per kilo. Required: a). Prepare the production budget for the three months July to September 2020. (10 marks) b). Prepare the direct materials budget for three months July to September 2020. (10 marks) c). Mention and explain five (5) purposes for which budgets are prepared. (5 marks) (Total 25 Marks)