Reference no: EM133016424
Question - Handley Industrial has estimated that production for the next five quarters will be: Production Information
1st quarter, 202054,900 units
2nd quarter, 202049,600 units
3rd quarter, 202060,200 units
4th quarter, 202047,200 units
1st quarter, 202156,500 units
Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $345,870 of raw material on hand at the beginning of the first quarter, 2020. Handley desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter.
Required - Prepare quarterly direct materials purchases budgets for Handley Industrial for 2020.