2.

The Tobler Company had budgeted production for the year as follows:

quarter

1

2

3

4

Production units

10,000

12,000

16,000

14,000

Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the third quarter would be (in lbs.)

Select one:

a. 49,600 lbs

b. 63,200 lbs

c. 64,000 lbs

d. None of the above