1. (LO 2) On January 1, 2020, the Heche Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter 2020 production: First quarter 5,000; second quarter 6,000; third quarter 7,000 40% of the next quarter's production requirements 30% of the next quarter's expected sales units 7,500 units The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. Two pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. Instructions a. Prepare a production budget by quarters for the 6-month period ended June 30, 2020. b. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020.