Determine the production and materials purchases budgets

Reference no: EM131965571

Problem

Production and Materials Purchases Budgets

White Corporation's budget calls for the following sales for next year.

Quarter 1 90,000 units Quarter 3 68,000 units
Quarter 2 76,000 units Quarter 4 96,000 units

Each unit of the product requires 3 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 requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production.

Required: Determine the production and materials purchases budgets for the second quarter.

Reference no: EM131965571

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