Exercise 10-7 Richetti Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 201750,000 units 2nd quarter, 2017 45,000 units 3rd quarter, 201754,000 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 rew material cost is $4 per pound. There is $136,000 of raw material on hand at the beginning of the frst quarter, 2017 Richetti desires to have 17 percent of next quarter's material requirements on hane at the end of each quarter Prepare quarterly direct materials purchases budgets for Richetti Industrial for 2017 Direct Materials Purchases Budget For the Year Ending December 31, 2017 Quarter 2 Quarter 1 Quarter 3 Quarter 4 Tear Units to be produced Cost of raw material per unit Add : Desired ending inventory of raw material Total material needed Less al: Beginning anventory of raw material Required raw matenal purchases