On January 1, 2017, the Pronghorn 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 5.100; second quarter 6,800; third quarter 7,300 40% of the next quarter's production requirements 25% of the next quarter's expected sales units 7,390 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 $5 per pound. PRONGHORN COMPANY Production Budget For the Six Months Ending June 30, 2017 Quarter 1 Expected Unit Sales 5100 6800 Add Desired Ending Finished Goods Unit 1700 1825 Total Required Units 6800 8625 Less u Beginning Finished Goods Unit 1275 1700 i Total Required Units 5525 6925 Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017. PRONGHORN COMPANY Direct Materials Budget Quarter 2 S . A Jauena