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On January 1, 2022, the Sunland Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022.

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On January 1, 2022, the Sunland Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,700; second quarter 6,840; third quarter 7,980. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 8,330 units. The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

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