Question
Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in Units............ 60,000 80,000 90,000 70,000
Prestwich Company has budgeted production for next year as follows:
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |
| Production in Units............ | 60,000 | 80,000 | 90,000 | 70,000 |
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. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
| 165,000 pounds |
| 82,500 pounds |
| 200,000 pounds |
| 205,000 pounds |
.
Prestwich Company has budgeted production for next year as follows:
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |
| Production in Units............ | 60,000 | 80,000 | 90,000 | 70,000 |
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. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
| 165,000 pounds |
| 82,500 pounds |
| 200,000 pounds |
| 205,000 pounds |
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