Required:

a) Prepare production budgets in units for July, August and September 2022.

b) Prepare a purchases budget in metres for July and August 2022, providing total purchases in both metres and dollars for each month.

c) Calculate the amount budgeted for cost of goods sold in July 2022.

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