Question 3 30 marks Banana Split Ltd producing Fruit Juice and provides the following sales budget for the next six months: Month Unit Sales 100,000 January February 110,000 March 120,000 April 110,000 May 130,000 June 120,000 The company's policy is to keep ending inventory of finished goods that is equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each bottle of finished goods produced. Each kilogram of direct materials costs $6. Ending inventory levels for materials are equal to 20% of the production needs for the next month. Sales price per bottle is $60. Required: (a) Prepare sales budgets in units and dollars for February and March (6 marks) (b) Prepare production budgets in units for February and March (8 marks) (c) (6 marks) Prepare a direct materials usage budget in kilograms and dollars for February Prepare direct materials purchases budgets in kilograms and dollars for February (d) (10 marks)