Question: tarjee industrial has estimated that production for the next five...
Tarjee Industrial has estimated that production for the next five quarters will be:
1st quarter, 2017 40,000 units
2nd quarter, 2017 36,000 units
3rd quarter, 2017 43,000 units
4th quarter, 2017 33,000 units
1st quarter, 2018 41,000 units
Finished units of production require 8 pounds of raw material per unit. The raw material cost is $7 per pound. There is $268,800 of raw material on hand at the beginning of the first quarter, 2017. Tarjee desires to have 12 percent of next quarter's material requirements on hand at the end of each quarter.
Prepare quarterly direct materials purchases budgets for Tarjee Industrial for 2017.