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Prestwich Company has budgeted production for next year as follows: Quarter First 66,000 Second 86,000 Third Fourth 76,000 Production in units Two pounds of material

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Prestwich Company has budgeted production for next year as follows: Quarter First 66,000 Second 86,000 Third Fourth 76,000 Production in units 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 40% of the next quarter's production needs for material A. A total of 52,800 pounds material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: O 180,000 pounds O 240.800 pounds O 164,000 pounds O 248.800 pounds

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