Exercise 13-6 (Part Level Submission) On January 1, 2017, the Grouper Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,300; second quarter 6,700; third quarter 7,800 40% of the next quarter's production requirements 25% of the next quarter's expected sales units 7,430 units. The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. (a) Your answer is correct. Prepare a production budget by quarters for the 6-month period ended June 30, 2017. GROUPER COMPANY Production Budget For the Six Months Ending June 30, 2017 v Quarter 1 2 Year Expected Unit Sales 5300 6700 Add Desired Ending Finished Goods Unit 1675 1950 Total Required Units 6975 8650 Less Beginning Finished Goods Unit 1325 1675 Required Production Units 5650 6975 12625 (b) Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017. GROUPER COMPANY Direct Materials Budget Quarter 1 2 Six Months V $ $ $ $