E9.6 (LO 2), AP on January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 5,000; second quarter 6,000; third quarter 7,000. Ending raw materials inventory: 40% of the next quarter's production requirements. Ending finished goods inventory: 25% of the next quarter's expected sales units. Third-quarter production: 7,200 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percent- age relationships to production and sales that occur in 2020. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 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. E9.7 (LO 2), AP Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units April 2,550 May 2,675 June 2,390 The target ending inventory of finished products is as follows. March 31 2,000 April 30 2,230 May 31 2,200 June 30 2,310 Two units of material are required for each unit of finished product. Production for July is esti- mated at 2,700 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month's production requirements. Raw materials are expected to cost $4 per unit throughout the period