Pablo Company has budgeted production for next year as follows:

	Quarter
	First	Second	Third	Fourth
Production in units	48,000	88,000	98,000	78,000

Three pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 38,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

72,500 pounds.

330,000 pounds.

271,500 pounds.

337,500 pounds.