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White Corporation's budget calls for the following sales for next year: 4 Quarter 1 93,500 units Quarter 3 66,300 units Quarter 2 80,000 units Quarter
White Corporation's budget calls for the following sales for next year: 4 Quarter 1 93,500 units Quarter 3 66,300 units Quarter 2 80,000 units Quarter 4 97,200 units Each unit of the product requires 4 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quarter's estimated sales awarded requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production. ed Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter. ok Determine the materials purchases budget for the second quarter. WHITE CORPORATION Budgeted Purchases of Direct Materials (In Ibs.) 2nd Quarter Budgeted production 79,315 Direct materials (lbs.) per unit produced 2x Direct materials needed in production 158,630 Desired ending inventory of direct materials (lbs.) 44,685 X Total direct materials needed 203,315 Beginning inventory of direct materials 47,589 X Budgeted purchases of direct materials (lbs.) 155,726
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