Best Leathers Sdn Bhd is a company based in the KL that employs around 20 people in the manufacture and sale of two Models of leather bags, XMen bag and Xladies bag. The bags sell for 30 RM and 50 RM, respectively. Because of the pandemic and lockdown, management budgets sales monthly. Its estimation for the first 2 months of 2021 are as follows:

Unit Sales
Models	January	February
XMen bag	1000	1500
Xladies bag	5000	7000

Required:
Prepare a sales budget for 2 months
ii. XYZ Company produces and sells automobile batteries, the heavy-duty HD-240. Budgeted sales for the first five months of the year are as follows:

Months	HD-240
January	200
Feb	240
March	180
April	160
May	240

The company wants to maintain an inventory of HD-240 equal to 25% of the following month's sales. At the beginning of the year, 40 HD-240 are on hand.
Required:
Prepare a production budget, in units, for each of the first four months?
Explain the use of budgets?