(AiCPA adapted) Comprehensive saies and production budget The Scarborough Corpora- tion manufactures and sells two products, Thingone and Thingtwo. In July 1992, Scarborough's budget department gathered the following data in order to project sales and budget requirements for 1993.

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Product Thingone.. Thingtwo. 1993 Projected Sales Units Price 6,000 $ 700 4,000 $1,000 1993 Inventories-in Units Product Thingone. Thingtwo Expected Desired 1/1/93 12/31/93 2,000 2,500 800 900 In order to produce one unit of Thingone and Thingtwo, the following raw materials are used: Amount Used per Unit Raw Material Unit Thingone Thingtwo A lbs. 40 BC B lbs. 20 C each 5350 10 Projected data for 1993 with respect to raw materials are as follows: Desired Inventories 12/31/93 Raw Anticipated Expected Inventories Material Purchase Price 1/1/93 A $8 32,000 lbs. 36,000 lbs. B $5 29,000 lbs. 32,000 lbs. C $3 6,000 each 7,000 each