Sun Goddess Limited manufactures winter sunglasses. Two components are required: COMPONENT COST FOR 2023 Frames R55 per sunglass Tinted glasses R95 per sunglass Additional information: • Sun Goddess Limited expects to sell 800 sunglasses in January 2023. • There are 230 sunglasses on hand on 31 December 2022. Sun Goddess Limited expects that there will be 180 sunglasses on hand at the end of January 2023. • The entity does not have any frames or tinted glasses on hand as it uses a just-intime inventory management system. It therefore also does not expect to have any raw materials after production. • Each sunglass requires 80 minutes of direct labour. Direct labour has a cost of R160 per hour. • A pair of sunglasses is sold for R450. • Sun Goddess Limited uses direct costing when determining the cost of its products. • Fixed production overheads are R6 500 per month, while production overheads are R9 per sunglass. 

REQUIRED: 

Prepare the following budgets for Sun Goddess Limited for January 2023: 

2.1) Production budget (5 marks) 2.2) Production cost budget.

2.3) Briefly describe three general benefits of firms using a just-in-time inventory management system.