Qurstion 2 Buumuno Lid has been tornred to buy gold bars and then modified into jewelry to meet the nes oi its customers. The business would acquire Non-Current Assets costing GH 110.000 and 5000 bars of gold on the first day of busness. The non-current assets are expected to have a six- year life with a residual value of GHC 2.000 at the end of the period. Buamono Ltd expects sales for the first two months to be 10.000 units with a 10% increase in each month following. The selling price would be GH 1,500 per unit for the first four months and increase it further by 15% thereafter. The firm's cost of production for a unit of item is as followings: Cost of gold bars Direct labour Production overheads GHC 500 GHC 350 GIIC 350 The production overhead per unit includes allocation of depreciation. The annuai depreciation is calculated on a straight line basis and is allocated on a monthly basis. Suppliers of gold bars will allow one month's credit. Sales are settled as follows: 70% in the month of sale and the remaining 30% in the month following. Wages are paid for as they are incurred. Production overheads would be paid for as they are incurred. The stock of finished goods at the end of each month will be sufficient to satisfy 20% of the planned sales of the same month whereas that of gold bars would remain unchanged. It may be assumed that sales are evenly spread throughout the month. Required Produce for each month of the first six months of trading: 1. Sales budget 2. Production budget 3. The Cash budget