Electro Company budgets production of 680,000 electric panels in the second quarter and 750,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $2.10 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarters budgeted materials requirements. Beginning inventory of this material is 108,800 pounds.

Prepare a direct materials budget for the second quarter.

ELECTRO COMPANY Direct Materials Budget \begin{tabular}{|l|r|l|} \hline & \multicolumn{2}{|c|}{ Second Quarter } \\ \hline Units to produce & 680,000 & units \\ \hline Materials required per unit & 0.80 & pounds \\ \hline Materials needed for production (pounds) & 544,000 & pounds \\ \hline Add: Desired ending materials inventory & & \\ \hline Total materials required & & \\ \hline Less: Beginning materials inventory & & \\ \hline Materials to purchase (pounds) & & \\ \hline Materials cost per pound & & \\ \hline Cost of direct materials purchases & & \\ \hline \end{tabular}