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 5,200; second quarter 6,700; third quarter 7,000. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 7,380 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. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. HARDIN COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Units to be Produced 5575 6775 Direct Materials Per Unit 3 3 Total Pounds Needed for Production 16725 20325 Add : Desired Ending Direct Materials (Pounds) 2710 4940 Total Materials Required 19435 25265 Less V: Beginning Direct Materials (Pounds) 2230 2710 Direct Materials Purchases 21665 27975 Cost Per Pound 5 $ 5 Total Cost of Direct Materials Purchases V $ 108325 $ 139875