3. Prior Corp. produces chairs. It requires 5 feet of wood per chair. Sales are estimated to be:

2020 Units

Jan. 10,000 units

Feb. 12,000

March 14,000

April 8,000

Chairs on hand at December 31, 2019 were 900 chairs. The corporation wants to maintain an inventory of 10% of the following months sales in its ending inventory. Prior Corp. had an inventory of wood at December 31, 2019 of 5,000 feet, and it desires to maintain ending inventories of 5% of the following months production needs. Required: Prepare a materials budget for January and February.