Scott Industries Has Estimated That Production for the Next Five

Essay

Scott Industries has estimated that production for the next five quarters will be:
Finished units of production require four pounds of raw material per unit. The raw material cost is $2.50 per pound. There are 45,000 pounds of raw material on hand at the beginning of the first quarter of Year 1. Scott Industries desires to have on hand 20 percent of next quarter's raw material needs at the beginning of each quarter.
Required. Prepare in good form a materials purchases budget for Scott Industries for each quarter of Year 1. Make sure your budget shows both the quantities and dollar costs of the raw materials required.