White Corporation’s budget calls for the following sales fornext year: Quarter 1 95,000 units Quarter 3 67,000 units Quarter 281,000 units Quarter 4 98,000 units Each unit of the productrequires 5 pounds of direct materials. The company’s policy is tobegin each quarter with an inventory of product equal to 5% of thatquarter’s estimated sales requirements and an inventory of directmaterials equal to 20% of that quarter’s estimated direct materialsrequirements for production. Required: 1. Determine the productionbudget for the second quarter. 2. Determine the materials purchasesbudget for the second quarter.
