Graham Corporation's Budgeted Production Schedule, by Quarters, for the Coming

question 78

Multiple Choice

Graham Corporation's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1 = 22,500 units
Quarter 2 = 19,000 units
Quarter 3 = 17,000 units
Quarter 4 = 24,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements.
Graham expects to have 50,000 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?

• A) 53,850 pounds.
• B) 55,200 pounds.
• C) 57,000 pounds.
• D) 58,800 pounds.
• E) 72,300 pounds.