The Tobler Company had budgeted production for the year as follows: Four pounds of raw materials are required for each unit produced.Raw materials on hand at the start of the year total 4,000 lbs.The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials.Budgeted purchases of raw materials in the second quarter would be (in lbs.)

Question

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To calculate the budgeted purchases of raw materials in the second quarter, we need to determine the production needs for the second and third quarters and adjust for the desired ending inventory. The ending inventory for the second quarter should be 10% of the third quarter's production needs. After calculating the total needs and subtracting the beginning inventory, we find that the budgeted purchases for the second quarter are 49,600 lbs.

The Tobler Company Had Budgeted Production for the Year as Follows