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Question - Graham Corporation's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1 = 34,500 units
Quarter 2 = 31,000 units
Quarter 3 = 29,000 units
Quarter 4 = 36,000 units
Each unit of product requires two pounds of direct material. The company's policy is to begin each quarter with 25% of that quarter's direct materials production requirements.
Graham expects to have 62,000 pounds of direct materials on hand at the beginning of Quarter 1.
What would be Graham's budgeted direct materials purchases for the second quarter of the year?
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