Question - Prester Corporation has budgeted production for next year as follows:
Quarter First Second Third Fourth Production in units 71,400 97,800 103,500 115,500
Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 35,900 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
198,450 pounds
195,600 pounds
247,350 pounds
192,750 pounds