Graham Corporation's budgeted production schedule, by quarters, for the coming year is as follows:

Quarter 1 = 32,500 units

Quarter 2 = 29,000 units

Quarter 3 = 27,000 units

Quarter 4 = 34,000 units

Each unit of product requires two pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements.

Graham expects to have 60,000 pounds of direct materials on hand at the beginning of Quarter 1.

What would be Graham's budgeted direct materials purchases for the second quarter of the year?

Multiple Choice

56,800 pounds.

59,200 pounds.

58,000 pounds.

56,050 pounds.

74,200 pounds.