Selected information concerning sales and production for Cabot Co. for July 2010 are summarized as follows: A. Estimated sales: Product K: 40,000 units at $30.00 per unit Product L: 20,000 units at $65.00 per unit B. Estimated inventories, July 1, 2010: Material A: 4,000 lbs. Product K: 3,000 units at $17 per unit $ 51,000 Material B: 3,500 lbs. Product L: 2,700 units at $35 per unit 94,500 Total $145,500 There was no work in process inventories estimated for July 1, 2010. C. Desired inventories at July 31, 2010: Material A: 3,000 lbs. Product K: 2,500 units at $17 per unit $ 42,500 Material B: 2,500 lbs. Product L: 2,000 units at $35 per unit 70,000 Total $112,500 There was no work in process inventories desired for July 31, 2010. Instructions 1. Prepare a sales budget for July. 2. Prepare a production budget for July.