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The master budget for a company contains me following production requirements. Quarter 1- 50,000 units Quarter 2 - 55,000 units Quarter 3 - 45,000 units Quarter 4 - 52,000 units Each unit of product requires four pounds of direct material. The company has a policy to begin each quarter with an inventory of aired materials equal to 20% of that quarter's direct material requirements The budgeted direct mate da I purchases for the third quarter would be
