Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows: Quarter 1 = 24,500 units Quarter 2 = 21,000 units Quarter 3 = 19,000 units Quarter 4 = 26,000 units Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements. Canyon expects to have 52,000 pounds of direct materials on hand at the beginning of Quarter 1. What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

Multiple Choice

• 21,500 pounds.

• 40,400 pounds.

• 43,550 pounds.

• 70,900 pounds.

• 92,400 pounds.