On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. 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, 2019, follow the same percentage relationships to production and sales that occur in 2020. 4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Expected Unit Sales Add : Desired Ending Finished Goods Unit Total Materials Required Less : Beginning Finished Goods Unit Required Production Units < HARDIN COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 5300 2 6700 Six Months Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production v Add Desired Ending Direct Materials (Pounds) Total Materials Required Less Beginning Direct Materials (Pounds) Direct Materials Purchases Cost Per Pound $ Quarter 1 2 Six Months Total Cost of Direct Materials Purchases $ 1 $