QUESTION 6 (20 Marks) Based on the information provided below, answer the following question. INFORMATION: Loctapus Co manufacturers a single product which is sold at R80 per unit. Sales forecasts for the next four months are as follows: Month July August September October Sales (units) 700 000 650 000 680 000 690 000 40% of each month's sales are produced in the mont fare produced in the month of sale. Cashflow forecast information: Cash sales are expected to amount to 30%% of total sales. Credit sales are payable in the month following sales The material cost for each unit produced is R36. 50% of the total direct materials required for production are purchased in the month prior to being used in production and the remainder in the month of production, Purchases in September for October production will amount to R12 267 000. Suppliers of direct materials are paid in the month of purchase Fixed overhead amounts to R10 million per month of which R2 million is depreciation. Conversion cost (labour and variable overhead) for each unit produced is R20. Conversion costs and fixed overhead are paid in the month incurred: R20 million cash payment will be made in August for a new equipment. Opening balance are as follows: Receivables R35 million Cash R10 million REQUIRED: Using a separate column for each month, prepare the following: 6.1 The Sales Budget in Rands for each of the three months of July, August, and September. (3 Marks) 6.2 The Production Budget in units for each of the three months of July, August, and September. (3 Marks) 6.3 The Cash Budget (ie., cashflow forecast) for the three months of July, August, and September (show all (14 Marks) workings)