Keep-it-Hot Inc. manufactures popular thermoses. On June 30, the company had 1,000 thermoses in inventory. Each thermos sells for $8.00. The company's policy is to maintain a thermos inventory equal to 10% of next month's sales. The company expects the following sales activity for the third quarter of the year:

July	7,000 units
August	15,000 units
September	10,000 units

In addition, October's sales are expected to be 9,000 units.

A. Prepare a sales budget for the third quarter of the year.

B. Prepare a production budget for the third quarter of the year.