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