Thomas Ltd manufactures and sells one product, Y56. The CEO asks you to redraft the entity’s budget as the management team has revised some of their assumptions and plans due to the impact of COVID 19. The CEO provides you with the following information.

Expected Sales(units)
2022:
Quarter 1	45,000
Quarter 2	50,000
Quarter 3	40,000
Quarter 4	37,000
2023:
Quarter 1	47,000
Quarter 2	55,000

• The selling price is expected to be $92 per unit for Quarter 1 and Quarter 2, with a permanent $2 price increase at the start of Quarter 3.
• The management team have decided for 2022 they wish to hold 20% of the following quarter’s sales units in ending inventory for Quarter 1 and Quarter 2. In Quarter 3 of 2022, continuing into 2023, Thomas Ltd aims to decrease this percentage to 10% as the COVID disruptions to supply chains should be reduced by then. Beginning inventory on 1 January 2022 is 4,800 units.
• Each unit uses 10 kg of direct material. Thomas Ltd has set the desired ending inventory of its direct material at 25% of the following quarter’s manufacturing needs for Quarter 1 and Quarter 2, reduced to 20% in Quarter 3 and 15% in Quarter 4. The material inventory on January 1, 2022, is expected to be 90,000kg. Thomas has a long-term supply agreement with its material supplier which sets the cost per kg at $0.55 for the next two years

Tasks:

Prepare the following budgets for each quarter and the year for the period ending 31 December 2022 (use whole numbers when rounding):

1. sales budget.
2. production budget
3. direct material purchases budget (use whole numbers when rounding).