26. Sales and Production Budgets. Templeton Corporation produces windows used in residential construction. Unit sales last year, ending December 31, are as follow: First quarter 40,000Second quarter 50,000 Third quarter 52,000 Fourth quarter 48,000 Unit sales are expected to increase 10 percent this coming year over the same quarter last year. Average sales price per window will remain at $200. Assume finished goods inventory is maintained at a level equal to 5 percent of the next quarter's sales. Finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,300 units. Required: 1. Prepare a sales budget for Templeton Corporation (Hint: be sure to increase last year's unit sales by 10 percent.) 2. Prepare a production budget for Templeton Corporation 27. Direct Materials Purchases and Direct Labor Budgets. Templeton Corporation produces windows used in residential construction. The company expects to produce 44,550 units in the first quarter, 55,110 units in the second quarter, 56,980 units in the third quarter, and 52,460 units in the fourth quarter. (This information is derived from the previous exercise for Templeton Corporation.) With regards to direct materials, each unit of product requires 12 square feet of glass at a cost of $1.50 per square foot. Management prefers to maintain ending raw materials inventory equal to 10 percent of next quarter's materials needed in production. Raw materials inventory at the end of the fourth quarter budget period is estimated to be 65,000 square feet. With regards to direct labor, each unit of product requires 2 labor hours at a cost of $15 per hour. Required: 1. Prepare a direct materials purchases budget for Templeton Corporation 2. Prepare a direct labor budget for Templeton Corporation