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Lancashire Inc. budgets production for the year as shown below: Quarter: 1 2 q , 1 q , 3 4 Production in Units: 1 5

Lancashire Inc. budgets production for the year as shown below:
Quarter: 12q,1q,
34
Production in Units:
15,000
17,000
14,000
12,000
5 pounds of wood (raw materials) are needed to produce one unit. Raw materials inventory at the beginning of the year is equal to 8,000lbs. Lancashire purchases its wood at a price of $0.50 per pound. The raw materials inventory at the end of each quarter must equal 15% of the next quarter's budgeted production needs for materials. How much will be spent on raw materials purchases in the second quarter?
$36,250
$82,750
$39,875
$41,375
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