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Quarter 1 90,500 units Quarter 3 64,900 units Quarter 2 78,000 units Quarter 4 95,600 units Each unit of the product requires 3 pounds of
Quarter 1 90,500 units Quarter 3 64,900 units Quarter 2 78,000 units Quarter 4 95,600 units
Each unit of the product requires 3 pounds of direct materials. The companys policy is to begin each quarter with an inventory of product equal to 5% of that quarters estimated sales requirements and an inventory of direct materials equal to 20% of that quarters estimated direct materials requirements for production.
Required:
1. Determine the production budget for the second quarter.
2. Determine the materials purchases budget for the second quarter.
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