The Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year: Budgeted production Quarter 145,000 units Quarter 238,000 units Quarter 334,000 units Quarter 448,000 units 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:

114,600 pounds.

Explanation:

Calculation to determine what Budgeted direct materials purchases for the third quarter would be:

First step is to calculate the production requirement

Production requirement = 34,000 units * 3 pounds each units

production requirement=102,000 pounds

Second step is to calculate the closing stock

Closing stock = Next quarters requirement * 30% Closing stock=[48,000*3 pounds]*30%

Closing stock=43,200.

Third step is to calculate the opening stock

Opening = current month's requirement *30%

Opening stock=[34,000 *3 pounds]*30%

Opening stock=30,600 pounds.

Now let calculate what Budgeted direct materials purchases for the third quarter would be:

Using this formula

Direct material purchases = Production requirement + Closing stock - Opening stock

Let plug in the formula

Budgeted material purchase = 102,000 + 43,200 - 30,600

Budgeted material purchase =114,600 pounds

Therefore Budgeted direct materials purchases for the third quarter would be:114,600 pounds

answer; yield to maturity;