Prestwich Company Has Budgeted Production for Next Year as Follows

Multiple Choice

Prestwich Company has budgeted production for next year as follows $\begin{array}{lrr} \text {Quarter } &\text { First}&\text { Second}&\text { Third}&\text { Fourh }\\\\ \text { Production in units } &60,000&80,000&90,000&70,000\\\end{array}$


Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for materialA. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

A) 82,500 pounds.
B) 165,000 pounds.
C) 200,000 pounds.
D) 205,000 pounds.