White Corporations budget calls for the following sales for next year:

Quarter 1	81,500	units	Quarter 3	60,700	units
Quarter 2	71,000	units	Quarter 4	90,800	units

Each unit of the product requires 4 pounds of direct materials. The companys policy is to begin each quarter with an inventory of product equal to 5% of that quarters estimated sales requirements and an inventory of direct materials equal to 20% of that quarters estimated direct materials requirements for production.

Required:

1. Determine the production budget for the second quarter.

2. Determine the materials purchases budget for the second quarter.

1.

Determine the production budget for the second quarter.

WHITE CORPORATION
Production Budget
2nd Quarter
Budgeted sales
Desired ending inventory
Total units needed
Beginning inventory
Total units to produce

2.

Determine the materials purchases budget for the second quarter.

WHITE CORPORATION
Budgeted Purchases of Direct Materials (In lbs.)
2nd Quarter
Budgeted production
Direct materials (lbs.) per unit produced
Direct materials needed in production
Desired ending inventory of direct materials (lbs.)
Total direct materials needed
Beginning inventory of direct materials
Budgeted purchases of direct materials (lbs.)