The Tide Company has budgeted sales for the year 2021 as follows:

Quarter 1 2 3 4 1^st qtr 2007

Sales in units 10,000 12,000 14,000 16,000 15,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarters budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarters production needs in material.

Scheduled purchases of raw materials for the second quarter should be:

Multiple Choice

• 50,000 pounds

• 55,800 pounds

• 50,800 pounds

• 55,000 pounds