10. The Vermont Furniture Company plans to sell chairs as follows:

	# of chairs
July	2,000
August	2,200
September	2,400
October	2,600
November	2,800

The selling price is $40 per chair

The desired ending finished goods inventory is 25% of the next months sales needs

Each chair requires 6 feet of wood

The cost of the wood is $5.00 per foot

The desired raw material wood inventory is 20% of next months production needs.

Required

a. Prepare a sales budget for the 3rd Quarter

b. Prepare a production budget for the 3rd Quarter

c. Prepare a direct materials purchases budget for the 3rd Quarter