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 5,200; second quarter 6,700; third quarter 7,000 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: 7,380 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. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound.