Meter Products has developed a very powerful toy. Each toy requires 4 chips.. The production budget for five quarters is shown below:

	Year 2				Year 3
	First	Second	Third	Fourth	First
Budgeted Production	50,000	70,000	140,000	70,000	80,000

Meter would like to have a desired ending inventory for each quarter to equal 20% of the following quarters production needs.

Prepare a direct materials budget for chips, by quarter and in total for Year 2.