Problem 1: Sales Budget Locksafe Company manufactures burglar-resistant commercial door locks. Recently the company began selling locks on the Web, and the company expects sales to increase dramatically compared with the prior year. For the past year, 2017, unit sales were: First quarter 23,000 units Second quarter 28,000 units Third quarter 27,000 units Fourth quarter 32,000 units Assume that total unit sales for each quarter in 2018 will be 30 percent higher than in 2017 and that the selling price per lock is $15. Prepare a sales budget (in units and dollars) by quarter for 2018. Problem 2: Production Budget Using the sales budget you prepared above for Locksafe, prepare a production budget (in units) by quarter for 2018. There are 1,300 burglar-resistant commercial door locks on hand at the start of the first quarter, and Locksafe Company desires to maintain quarterly ending inventory equal to 15 percent of next quarter's expected sales. The first quarter of 2019 has expected quarterly sales of 35,000 Problem 3: Direct Materials Purchases Budget Using the production budget you prepared above, prepare a direct materials purchases budget by quarter in 2018. Finished units of production require 6 ounces of raw material per unit. The raw material cost is $7 per ounce. There is $283,500 of raw material on hand at the beginning of the first quarter, 2018. Locksafe desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Locksafe's production budget for the first quarter of 2019 is 15,000 units