Exercise 10-7 Handley Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2017 43,000 units 2nd quarter, 2017 39,000 units 3rd quarter, 2017 46,000 units 4th quarter, 2017 38,000 units 1st quarter, 2018 45,000 units Finished units of production require 9 pounds of raw material per unit. The raw material cost is $3 per pound. There is $127,710 of raw material on hand at the beginning of the first quarter, 201 Handley desires to have 11 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Handley Industrial for 2017. Handley Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017 Quarter 2 Quarter 1 Quarter 3 Quarter 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