Quarter 1 Quarter 2 95,000 units 81,000 units Quarter 3 Quarter 4 67,000 units 98,000 units Each unit of the product requires 5 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quarter's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production