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 $7(1)/(2)\%$ 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 $$112,000$ will be received in November and paid for in December $2020.$ You have been provided with the following budgeted balance sheet information as at September $1,2020$ well as estimates and other operating data: Exquisite Bedding Ltd Budgeted Balance sheet as at September $1,2020$ ASSETS Cost Depreciation to$-$date Net book value Non$-$current assets $ $ $ Land and buildings $500,000$ Nil $500,000$ Machinery and equipment $124,00084,50039,500$ Motor vehicles $42,00016,40025,600666,000100,900565,100$ Current assets Closing stock: Raw materials Finished goods $4,32010,45014,770$ Receivables $18,080$ Cash at bank $6,79039,640604,740$ Financed by: $500,000$ $$1$ Ordinary shares $500,000$ Share premium $60,000$ Retained earnings $40,840600,840$ Current liabilities Accounts payable $3,900604,740$ Other information: $1.$ Stock valuation was done using FIFO method and the closing stock of finished goods is $100$ units. i$.$e$.$ the opening stock of finished goods in September is $100$ units $2.$ Receivables of $$18,080$ represent $$7,680$ for July and $$10,400$ for August $2020.3.$ Estimates for the four months period are as follows: September October November December Sales $($units$)8090100110$ Sales units increase by $10$ units each month. $4.$ Variable overheads are charged at the rate of $$3$ per labour hour. $5.$ Fixed overheads were estimated at $$1,200$ per month. $6.$ The company sublets a section of the factory and the monthly rent of $$3,000$ is received in the month incurred. $7.$ The company estimated that it will have to pay $$10$ per unit for raw materials. $5$kgs of raw material is required to produce one bed. $8.$ It is the companys policy to maintain $50\%$ of the materials required for the next months production. The opening stock for raw materials is $175$ kgs$.9.$ All sales and purchases of raw materials are on credit and customers are allowed two months credit and suppliers of raw materials are paid after one months credit. $10.$ Variable overheads and fixed overheads are paid in the month in which they are incurred. $11.$ Each bed takes $12$ labour hours and the rate per labour hour is $$5.12.$ The companys policy is to have the next months sales units in stock of finished goods at the end of each month. $13.$ An interim dividend to $30$ September $2020$ of $$12,500$ will be paid in December $2020.14.$ Depreciation for the four months, including the new machinery, was calculated to be: Machinery and equipment $$15,733$ Motor vehicles$ $3,500$ You are required to: a$.$ Construct the following budgets: i$.$ Salesii. Productioniii. Raw materials purchasesiv. Labourv. Overheadsvi. Cash Budget