Required: Compute for the following:

1. Number of units of materials needed for production in the first quarter.

2. The desired inventory of materials at the end of the budget year.

3. The number of units of materials to be purchased in the third quarter.

4. The amount of purchases in the second quarter.

5. The total amount paid for materials purchases at the end of 2023.

The production budget for the year 2023 of Mahogany Corporation per quarter is given as follows:

First quarter 26,000

Second quarter 32,000

Third quarter 34,000

Fourth quarter 44,000

For every one unit of its product, 5 units of materials are needed. Materials are purchased at P6 per unit. Materials inventory at the end of each quarter is maintained at 20% of next quarters production requirements. For the first quarter of the year 2024, it is estimated that production requirements will be 30,000 units of materials.

Accounts payable at the beginning of 2023 was projected to be P48,000. It is estimated that 75% of the purchases will be paid in the quarter of purchase, while the balance is paid in the next quarter.