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A total of 35900 pounds of material a are on hand to start

Question - Prester Corporation has budgeted production for next year as follows:

Quarter First Second Third Fourth Production in units 71,400 97,800 103,500 115,500

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 25% of the next quarter's production needs for material A. A total of 35,900 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

198,450 pounds

195,600 pounds

247,350 pounds

192,750 pounds

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Accounting Basics: A total of 35900 pounds of material a are on hand to start

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