Runner Industrial has estimated that production for the next five quarters will be:

1st quarter,2020 40,500 units

2nd quarter, 2020 36,800 units

3rd quarter, 2020 44,200 units

4th quarter, 2020 34,400

1sr quarter, 2021 42,100 units

Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $255,150 of raw material on hand at the beginning of the first quarter, 2020. Runner desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter.

Units to be produced ( Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year)

Cost of raw material per unit

Cost of raw material needed for production

Add: Desired ending inventory of raw material

Total material needed

Less: Beginning inventory of raw material

Required raw material purchases