Exercise 10-7 Benton Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2017 50,000 units 2nd quarter, 2017 45,000 units 3rd quarter, 2017 54,000 units 4th quarter, 2017 44,000 units 1st quarter, 2018 52,000 units Finished units of production require 4 pounds of raw material per unit. The raw material cost is $4 per pound. There is $136,000 of raw material on hand at the beginning of the first quarter, 2017. Benton desires to have 17 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Benton Industrial for 2017. Benton Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017 Quarter 2 Quarter 1 Quarter 3 Quarter 4 Year Beginning inventory of raw material Cost of raw material needed for production Required raw material purchases Units to be produced Cost of raw material per unit Desired ending inventory of raw material Total material needed