Required for each unit produced

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Reference no: EM131206612

Prestwich Company has budgeted production for next year as follows:

First 74,000 Second 94,000 Third 104,000 Fourth 84,000

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 40% of the next quarter's production needs for material A. A total of 59,200 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

271,200 pounds

196,000 pounds

263,200 pounds

180,000 pounds

Reference no: EM131206612

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