QUESTION 7 Question 7 has two parts - Part (1) and Part (2). You are required to answer BOTH parts Question 7 - Part (1) Luminant Productions produces light fittings. The company's directors have just met to discuss the sales budgets and related matters for the next quarter. They project that the sales in units for the next quarter will be: January 2016 February 2016 March 2016 Units 8,600 8,200 9,000 The opening inventory of finished goods at 1 January, 2016 is expected to be 6,000 units. The directors feel that they keep too many units in inventory and intend to reduce it to more reasonable levels over the next few months. They plan to reduce opening inventory by 500 units each month from January 2016 to April 2016 Each light fitting unit uses 2 worth of raw materials. The raw materials inventory at January 1 is estimated to have a value of 2,800. The directorswish to increase that inventory level slightly over the next few months, as there is a danger of running out of raw materials inventory to transfer to production. The required values of the raw material inventory the company is planning to achieve is presented below Opening inventory at February 1 should be March 1 should be April 1 should be 3,000 3,100 3,200 Required Calculate the following budgets for each of the three months of January to March 2016 1) The production budget (in units); and (6 marks) 2) The raw material purchases budget in () (6 marks)