Exercise 10-25 (Algo) Production and Materials Purchases Budgets [LO 10-4] White Corporation's budget calls for the following sales for next year: Quarter 1 Quarter 2 93,500 units 80,000 units Quarter 3 Quarter 4 66,300 units 97,200 units Each unit of the product requires 4 pounds of direct materials. The company's policy is to begin each quarter with an Inventory of product equal to 5% of that quarter's estimated sales requirements and an Inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the production budget for the second quarter. WHITE CORPORATION Budgeted sales Production Budget 2nd Quarter Desired ending inventory Total units needed Beginning inventory Total units to produce Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the materials purchases budget for the second quarter. WHITE CORPORATION Budgeted Purchases of Direct Materials (In lbs.) Budgeted production 2nd Quarter Direct materials (lbs.) per unit produced Direct materials needed in production Desired ending inventory of direct materials (lbs.) Total direct materials needed Beginning inventory of direct materials Budgeted purchases of direct materials (lbs.)