On January 1, 2014, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2014. Sales units: First quarter 6,000; second quarter 6,200; third quarter 7,800 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: 7,810 units The ending raw materials and finished goods inventories at December 31, 2013, follow the same percentage relationships to production and sales that occur in 2014. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost S4 per pound. Your answer is correct. Prepare a production budget by quarters for the 6-month period ended June 30, 2014. Your answer is partially correct. Try again. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2014