Question - Whites Corporation's budget calls for the following sales for next year:
Quarter 1 $90,000 units
Quarter 2 $76,000 units
Quarter 3 $68,000 units
Quarter 4 $96,000 units
Each unit of the product requires 3 pounds of direct material. The company's 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 the quarters estimated direct materials requirements for production.
Determine the production and materials purchases budgets for the second quarter.