On January 1, 2020, the Johnson Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.

Sales Units: First quarter 5,600; second quarter 6,400; third quarter 7,000

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

Ending finished goods inventory: 25% of the next quarter's expected sales units.

Third-quarter production: 7,440 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. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

-Prepare a production budget by quarters for the 6-month period ended June 30, 2020:

Quarter 1 Quarter 2 Six Months

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Expected unit sales

Add: Desired ending finished goods

Total required units

Less: Beginning finished goods unit

Required production units

-Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020:

Quarter 1 Quarter 2 Six Months

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Units to be produced

Direct materials per unit

Total pounds needed for production

Add: Desired ending direct materials (pounds)

Total materials required

Less: Beginning direct materials (Pounds)

Direct materials purchases

Cost per pound

Total cost of direct materials purchases