XX Ltd is preparing its budget for 2019. The company has collected the following information from the managers, 1. Sales: Sales for November 2018 Sales for December 2018 Expected sales for January 2019 Expected sales for February 2019 Expected sales for March 2019 Expected sales for April 2019 Expected sales for May 2019 Selling price per unit 112,500 102,100 113,000 112,500 116,000 125,000 137,500 $12 units units units units units units units The company likes to keep 15% of next month's unit sales in ending finished goods inventory, All sales are on credit, 80% collected in the month of sale and 20% in the month after sale. Accounts receivable on December 31, 2018, totaled: $170,000 2. Direct Materials: 2 pounds of direct materials is needed to produce one unit. The company likes to keep 5% of the materials needed for the next month's production in its raw material ending inventory. Raw materials on hand on December 31, 2018, totaled 10,000 pounds. Direct materials cost is $5 per pound Payment for materials is made on credit, 70% is paid in the month of purchase and 30% is paid after the month of purchase. Accounts payable on December 31, 2018, totaled $110,000 3.Direct Labor Labor requires 5 hour per unit for completio 5 hour per unit for completion and is paid at a rate of $10 per hour. Required: Prepare the followi (a) Production Budget (b) Direct Materials Purcha (c) Schedule of expecte prepare the following for January & February 2019: [2 marks] Materials Purchase Budget in pounds and S. [3 marks) ule of expected cash payments for direct material purchases [4 Marks] Good Luck