Question 8 of 10 25 / 25 E Your Answer Correct Answer Your answer is correct. Page Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 52,200 units 2nd quarter, 2020 47,200 units 3rd quarter, 2020 57,200 units 4th quarter, 2020 44,800 units 1st quarter, 2021 53,800 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $328,860 of raw material on hand at the beginning of the first quarter, 2020. Page desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Page Industrial for 2020. Page Industrial Direct Materials Purchases Budget For the Year Ending December 31, 202 Quarter 1 Quarter 2 Units to be produced 52200 47200 Cost of raw material per unit $ 42 42 Cost of raw material needed for production # 2192400 1982400 Add * Desired ending inventory of raw material 297360 360360 Total material needed 2489760 2342760 Less # Beginning inventory of raw material 328860 297360 Required raw material purchases 2160900 $ 2045400 e Textbook and Media Solution Assistance Used Desired ending inventory of raw material = 15% of next quarter's material requirements for production