On January 1, 2023, the Sunland Company budget committee reached agreement on the following data for the six months ending June 30, 2023: 1. Sales units: First quarter 5,000; second quarter 6,200; third quarter 6,800 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. 4. Ending finished goods inventory: 25% of the next quarter's expected sales units Third-quarter production: 6,900 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2022.3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.