On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017.

Sales units: First quarter 5,800; second quarter 6,600; third quarter 7,600 Ending raw materials inventory: 40% of the next quarters production requirements Ending finished goods inventory: 25% of the next quarters expected sales units Third-quarter production: 7,780 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.) Prepare a production budget by quarters for the 6-month period ended June 30, 2017.

B.) Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017.