Supra Ltd produces and sells main frame computer peripheral. The following data compiled by the management accountant for year 2020. (i) Sales: Quarter 1, 5,250 units; Quarter 2, 7,500 units; Quarter 3, 8,500 units; Quarter 4, 5,750 units. Selling price is $1,250 per unit. (ii) Direct material and direct labour: Each unit of peripheral uses 4 kgs of material and needed 30 labour hours to produce. Each kg of material will cost $40 and labourer rate is $15 per hour. (iii) Desired finished goods and material inventories levels: Supra Ltd has the policy to carry sufficient inventory of finished goods to meet 50% of the next quarter's sales, and sufficient raw materials to meet 80% of the next quarter's budgeted production. The company expects to have 20,400 kgs of material on hand at the end of quarter 4, 2019. (iv) Production overheads: The variable overhead budgeted at $5 per direct labour hour and all the variable overhead expenses are paid for in the quarter incurred. Fixed overhead totals $147,000 each quarter, which includes $27,000 depreciation per quarter on the basis of labour hours. The budgeted labour hours for 2020 is 840,000. (v) The income tax rate is 30%. Required: Prepare the quarterly budget for the first two quarters for year 2020 unless otherwise stated: (a) Sales budget. (1 mark) (b) Production budget. (4 marks) (c) Direct material purchase budget in kgs and in $. (4.5 marks) (d) Direct labour budget in hours and in $. (2 marks) (e) Production overhead budget. (2.5 marks) (f) Ending finished goods inventory at end of quarter 2. (3 marks)