9-27 Sales and Production Budgets Scarborough Corporation manufactures and sells two products: Thingone and Thingtwo. In July 20X7, Scarborough's budget department gathered the following data in order er to project sales and budget requirements for 20X8. 20X8 Projected Sales Units Thingone40,000 $ 70 $100 Thingtwo 40,000 20X8 Inventories-in units: Expected Desired Thingone Thingtwo December 31 20x8 25,000 9,000 20,000 8,000 In order to P are used: one unit of Thingone and Thingtwo, the following raw materials Thingone Thingtwo Units lbs. lbs. each Projecied data for 20X8 with respect to raw materials are as follows Desired December 31, 36,000 lbs. Expected January 1, Materials Price S8 $5 $3 32,000 lbs. 29,000 lbs. 6,000 each 32,000 lbs. 7,000 each