School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school systems throughout the mid-west. The controller of the company's Desk Division is currently preparing a budget for the third quarter of the year. The following sales forecast has been made by the division's sales manager. July 10,000 desk-and-chair sets August 12,000 desk-and-chair sets September 15,000 desk-and-chair sets Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $40. Pine planks cost $.60 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $21.00 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales. Required: Complete the following budget schedules. A. Sales budget (10 points): August September Sales (in sets)..... Sales price per set Sales revenue. July 10,000 $40 $400,000 X B. Production budget (in sets) (10 points): August September July 10,000 2,400 12,400 2,000 Sales ....... Add: Desired ending inventory. Total requirements... Less: Projected beginning inventory.. Planned production .......... 3,000 10,400