Question
Prester Corporation has budgeted production for next year as follows: Quarter Budget First Second Third Fourth Sales in units Production in units 70,000 60,000 80,000
Prester Corporation has budgeted production for next year as follows: Quarter Budget First Second Third Fourth Sales in units Production in units 70,000 60,000 80,000 70,000 90,000 80,000 100,000 90,000 Two 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. Budgeted purchases of material A for the second quarter would be:
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145,000 pounds
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140,000 pounds
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180,000 pounds
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135,000 pounds
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