Stars co has projected sales of its product for the next six months as follows: January February March April May June 50 units 100 units 200 units 250 units 150 units 300 units Additional information: a. The product sells for $50 each. b. Sales will be collected based on the following pattern: 80% in the month of the sales, while the remaining 20% in the month after the sales. c. 1 unit of finished product requires 2 units of direct material. d. The company has a policy to maintain ending inventory of finished goods to be equal to 10% of next month's sales. Meanwhile, ending inventory of direct materials is maintained to be equal to 10% of next month's production requirement. Required: 1. Prepare the following budgets: a. Sales budget for February, March and April. b. Cash receipt/ collection budget for March and April. c. Production budget for February and March. d. Direct materials purchase budget for February. 2. Provide an example of how human factors could hinder an organization's budgeting process