Question 7 On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017. First quarter 5,000; second quarter 6,000; third quarter 7,000 40% of the next quarter's production requirements 25% of the next quarter's expected sales units 7,200 units. Sales units Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. (a) Prepare a production budget by quarters for the 6-month period ended June 30, 2017. (b) Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017