Exercise 8-11 Direct Materials and Direct Labor Budgets [LO4, LO5] The production department of Priston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,000 9,000 10,000 7,000 -------------------------------------------------------------------------------- In addition, the beginning raw materials inventory for the 1st Quarter is budgeted to be 2,400 pounds and the beginning accounts payable for the 1st Quarter is budgeted to be $15,200. Each unit requires two pounds of raw material that costs $3.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 15% of the following quarter