Page 2 Intermediate Management Accounting Question 2 (6 marks) SDJ Productions Inc. (SDJ) used the following information to forecast its production of widgets for the upcoming year: The product requires 0.5 kilograms of raw material at a cost of $5 per kilogram. SDJ is projecting production requirements for the coming year as follows: Q1 Q2 23 Q4 Production needs 10,000 12,000 16,000 8,000 SDJ's production manager maintains ending inventory of raw materials at 25% of the following quarter's production needs. The desired ending inventory for raw materials for the fourth quarter is 1,700 kilograms. The beginning inventory of raw materials was 1,100 kilograms ($6,300). Required: Prepare SDJ's raw materials purchases budget for each quarter. (6 marks)