Prestwich Company has budgeted production for next year as follows: 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: 82,500 pounds 165,000 pounds 200, 000 pounds 205,000 pounds