Clinton Industrial has estimated that production for the next five quarters will be:

Production Information:

1st quarter, 2020 54,000 units

2nd quarter 2020 48,800 units

3rd quarter 2020 59,200 units

4th quarter 2020 46,400 units

1st quarter 2021 55,600 units

Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $340,200 of the raw material on hand at the beginning of the first quarter, 2020. Clinton desires to have 15% of next quarter's material requirements on hand at the end of each quarter.

Prepare quarterly direct materials purchases budgets for Clinton Industrial for 2020.

Clinton Industrial

Direct Materials Purchases Budget

For the Year Ending December 31, 2020

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year

Units to be produced _________ _______ _______ ______ ______

Cost of raw material per unit _________ _______ _______ ______ ______

Cost of raw material needed for production _________ _______ _______ ______ ______

Add: Desired ending inventory of raw material _________ _______ _______ ______ ______

Total material needed _________ _______ _______ ______ ______

Less: Beginning inventory of raw material _________ _______ _______ ______ ______

Required raw material purchases _________ _______ _______ ______ ______