Use the following information to answer the next two questions: The Hamblen Company has budgeted production for the next five quarters as follows: 2004 2004 2004 2004 2005 Quarter ............... First Second Third Fourth First Production in units ... 10,000 12,000 16,000 14,000 11,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's raw material needs. 3. Budgeted purchases of raw materials in the third quarter would be: a. 50,400 lbs. b. 56,800 lbs. c. 62,400 lbs. d. 63,200lbs. 4. The raw materials inventory at the end of 2004 is expected to be: a. 4,400 b. 4,800 c. 5,600 d. 6,400