taken from af102 usp solution for all ...immediate response n solution pleaseee

QUESTION 2: Budgeting Total marks for this question: 30 marks [Suggested time: 54 minutes] Illuminate Ltd. is a company that produces various Wlights that is distributed through gift shops located in major shopping Macross Fiji. One of its best sellers is the Aura W lights. In 202]. the company projects selling 100 000 of Aura lights in April. 120 000 in May. and l40 000 in June. The Aura light sells for $20 and has the following standard unit production costs at a monthly volume of 100 000 units: Raw materials $5.00 Direct [gm 8.00 Variable overhead 2.00 Fixed overhead 0.50 the budgeted fixed production costs include nan-cash expenses of $20 000. Under-or Wed overhead is closed to the Cost of Goods Sold each month. Other monthly expenses include distribution expenses of IO percent of sales and administrative expenses of $5 000. the Company currently has 40 000 Aura lights on hand and sufcient raw materials to produce MI] 000 additional units. The company desires to have sufficient quantities of the nished product on hand at the end of each month to supply 50 percent of the following month's sales and sufficient raw materials to supply 80 percent of the following month's production. The Company believes in \"cash on the barrel head." It pays all debts immediately and it does not sell on account. The current March 31 cash balance is $10 000. REQUIRED [Nota: Each budget must have a proper titlehaadingl {a}. Prepare a production budget (in units] for April and May. {7 marks] lb}. Prepare a purchases budget for April. {5 marks] [c]. Prepare a Cash budget for April. {l3 marks] {d}. Write a memo to the senior management on Illuminate's cash position in April and give your recommendations [use proper memo format}. {5 marks]