Oak Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter. 2020 44,100 units 2nd quarter, 2020 40,000 units 3rd quarter.2020 48,200 units 4th quarter, 2020 37.600 units 1st quarter, 2021 45,700 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $277.830 of raw material on hand at the beginning of the first quarter 2020. Oak desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Oak Industrial for 2020 Oak Industrial Direct Materials Purchases Budget For the Year Ending December 31, 20 Quarter 1 Quarter 2 44100 40000 $ 6 s 6 $ Units to be produced Cost of raw material per unit Desired ending Inventory of raw material Total material needed Beginning inventory of raw material Required raw material purchases Cost of raw material needed for production 246600 240000 7 7 Total material needed 1852200 1680000 Add : Required raw material ourchases 252200 303660 Cost of raw material needed for production 1876370 1731660 Quarter 2 Quarter 3 Quarter 4 Year 40000 48200 37600 169900 6 $ 8 $ 5 240000 289200 541752 528480 7 7 8890 1680000 2024400 1579200 6433 303660 236880 287910 124 1731660 1957620 1630230 $ 90876