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.