Ipswich Pillows Ltd (IPL) sells special type of pillows that gives relief to people with neck pain. IPL is trying to prepare a sales forecast and related budget for the year 2022. IPL expects that it will be able to sell 700 pillows in January 2022 which is expected to grow by 20 per cent in next 4 months from previous month’s sales until March 2022. It is expected that from April 2022, the sale will grow by 25 per cent of the previous month. The December 2021 actual sales were 600 pillows. The December 2021 finished goods ending inventory was 900 units. The selling price per pillow is $25. The company has a policy of maintaining a closing inventory of pillow which will be equal to 100 per cent of next month plus 50 per cent of second-month target sales. To manufacture one pillow, the company requires 3 kgs of special fibre and 1.5 metres of fine white cloth. The cost of per kg special fibre is $3 and per metre of fine white cloth is $5. The company has the policy to keep 50 per cent of next month's required raw materials for production to keep as a closing inventory. 

Required: 

Prepare the following budgets for the period of January- March 2022:

a. A production budget and sales budget. (9 marks)

b. Raw materials purchase budget for the both type of raw materials. (20 marks)