Question 8 Total: 11 marks Coco-True Ltd expects to manufacture and sell lady's shoes. It has the following information for its 2021 budget (1) Sales price of a pair of shoes is $100. (2) Product costs per pair of shoes: Direct materials (2 metres @ $15) $30.00 Direct labour (1 hour @ 15.00) $15.00 Overheads $5.00 $50.00 (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 ending inventory balances: Type Finished goods Quantities 20% of the pairs required for the next month's sales. Expected balance on 1 July 2021 is 800 pairs. 40% of the materials required for the next month's sales. Balance on 1 July 2021 is 3,000 metres. Direct materials Required: a) b) (4 marks) (4 marks) Prepare production budgets in units for July, August and September 2021. Prepare a purchases budget in metres for July and August 2021, providing total purchases in both metres and dollars for each month. Calculate the amount budgeted for cost of goods sold in July 2021. c)