The Jung Corporation's Production Budget Calls for the Following Number

Multiple Choice

The Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year: $\begin{array}{lrr}\text { Budgete}&\text { dproduction }\\ \text {Quarter 1. } & \text {45,000 units}\\ \text { Quarter 2 } &\text {38,000 units}\\ \text { Quarter 3. } & \text {34,000 units}\\ \text { Quarter 4 } & \text {48,000 units}\\\end{array}$

Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter's direct material requirements. Budgeted direct materials purchases for the third quarter would be

A) 114,600 pounds.
B) 89,400 pounds.
C) 38,200 pounds.
D) 29,800 pounds.