You have recently been appointed as Management Accountant for Exquisite Bedding Ltd$,$ a small company that manufactures a specialized bed for the elderly which is sold to the public and its wholly owned subsidiary company, Ultimate Care Ltd$.,$ a retail department store. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months period from September to December $2020.$During a preliminary review, you established that the company intends to sell each bed produced for $$219$ to Ultimate Care Ltd$.$ in addition to individual customers on the same credit terms. However, the Managing Director is concerned about the performance of both entities think a different pricing strategy should be used for the beds sold to Ultimate Care Ltd$.$ The current strategy might impact adversely on the company as a whole, in particular, the sub$-$optimization of goals, stakeholders expectations and the behavior of managers and employees.Exquisite Bedding Ltd secured a cash loan of $$120,000($from Barclays Bank$)$ that was secured on the land and buildings at an interest rate of $712\%$ and this is due to be received in November $2020.$ The repayment of the loan will begin March $2020,$ however, monthly interest payment will begin in December $2020.$ Also, machinery costing $$112,000$ will be received in November and paid for in December $2020.$You have been provided with the following budgeted balance sheet information as at September $1,2020$ well as estimates and other operating data:Non$-$current assetsLand and buildings Machinery and equipment Motor vehiclesCurrent assetsClosing stock: Raw materials Finished goods Receivables Cash at bank$$500,000124,00042,000666,0004,32010,450$Exquisite Bedding LtdBudgeted Balance sheet as at September $1,2020$ASSETS CostDepreciation to$-$ date $ Nil $84,50016,400100,90014,77018,0806,790$Net book value $$500,00039,50025,600565,10039,640604,740$ Financed by:$500,000$ $$1$ Ordinary shares Share premiumRetained earningsCurrent liabilities Accounts payableOther information:$500,00060,00040,840600,8403,900604,7401\mathrm{.}2.3\mathrm{.}4.5.6\mathrm{.}7\mathrm{.}8\mathrm{.}9\mathrm{.}10\mathrm{.}11.12\mathrm{.}13.14.$Stock valuation was done using FIFO method and the closing stock of raw materials is for $100$ units.Receivables of $$18,080$ represent $$7,680$ for July and $$10,400$ for August $2020.$ Estimates for the four months period are as follows:September October November DecemberSales $($units$)8090$Sales units increase by $10$ units each month$\mathrm{.}100110$Variable overheads are charged at the rate of $$3$ per labour hour.Fixed overheads were estimated at $$1,200$ per month.The company sublets a section of the factory and the monthly rent of $$3,000$ is received in the month incurred.The company estimated that it will have to pay $$10$ per unit for raw materials. $5$kgs of raw material is required to produce one bed.It is the companys policy to maintain $50\%$ of the materials required for the next months production. The opening stock for raw materials is $175$ kgs$.$All sales and purchases of raw materials are on credit and customers are allowed two months credit and suppliers of raw materials are paid after one months credit. Variable overheads and fixed overheads are paid in the month in which they are incurred.Each bed takes $12$ labour hours and the rate per labour hour is $$5.$The companys policy is to have the next months sales units in stock of finished goods at the end of each month.An interim dividend to $30$ September $2020$ of $$12,500$ will be paid in December $2020.$ Depreciation for the four months, including the new machinery, was calculated to be:Machinery and equipment Motor vehicles$$15,733$ $ $3,500$You are required to:a$.$ Construct the following budgets:i$.$ Salesii. Productioniii. Raw materials purchasesiv. Labourv. Overheadsvi. Cash Budget$(2$ marks$)(6$ marks$)(8$ marks$)(5$ marks$)(5$ marks$)(24$ mks$)$