Mayor Corporation has the following required production in units for Year 2the coming yearand for the first

	Year 2 Quarter	Year 3 Quarter
	1	2	3	4	1
Budgeted Units Sales	46,000	72,000	85,000	56,000	73,000

Five pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand.

How much materials should be purchased in Year 2 Quarter 1? a. 243,000 pounds b. 366,500 pounds c. 289,000 pounds d. None of the above