on January 1, 2020 the Harding company budget committee has reached agreement on the following data for the six months ending June 30, 2020.

sales unit: First quarter 5,300; Secound quarter 6,000; third quarter 7,800.

ending raw materials inventory: 40% of the next quarter's production requirements

and even finished goods inventory: 25% of the next quarter's expected sales units

third-quarter production: 7,360 units

The ending Ron materials been finished goods inventories at December 31, 2019 all of the same percentage relationships to production and sales that occur in 2020. 3 pounds of raw materials are required to make each unit finished goods. Rama Terrio's purchased are expected to cost four dollars per pound