REQUIRED:PART A: prepare the company's sales budget and production budget using the information provided above.PART B: Assume that units to be produced for January are 44,000 units. Using the level of units to be produced (INSTEAD of the units to produce you calculated in part A), prepare the company's Direct Materials, Direct Labour, and Overhead Budgets.

Question: Natasha Inc. ("the company") needs your help with preparing their operating budgets for the coming year. They have asked you to focus on their yoga pants product line for January, 2021. The following information is available: January estimated sales, 52,000 units. Sales price, $68 per unit. Closing inventory on December 31, 2020, is 3,600 units. Desired ending inventory is 15% of the current month's sales. Each unit requires 1.30 hours of direct labour at a cost of $15 per hour. Each unit is made of 2.50 meters of high quality fabric which costs $16 per metre. The company's inventory policy is to have 1,600 metres of direct materials in inventory at the end of each month. Closing direct material inventory on December 31, 2020, was as expected. The company's variable overhead rate is $13 per direct labour hour. The company's fixed overhead is budgeted at $4,100 per month