Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 2,000,000 units. Quarterly sales are 21%, 27%, 23%, and 29%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarters budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2021 are 510,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020.

PARGO COMPANY Direct Materials Budget choose the accounting period December 31, 2020For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020
		Quarter
		1		2		3		4		Year
select an opening direct materials budget item Total Pounds Required for ProductionTotal Materials RequiredDirect Materials Per UnitTotal Required Direct Labor HoursUnits to be ProducedDirect Labor Time Per UnitCost Per PoundBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Direct Labor CostDirect Labor Cost Per HourDirect Materials PurchasesDesired Ending Direct Materials (Pounds)		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select an item Direct Materials PurchasesTotal Pounds Required for ProductionTotal Direct Labor CostTotal Materials RequiredTotal Cost of Direct Materials PurchasesDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Beginning Direct Materials (Pounds)Units to be ProducedDirect Labor Time Per UnitTotal Required Direct Labor HoursCost Per PoundDirect Materials Per Unit		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the first part Direct Labor Time Per UnitTotal Required Direct Labor HoursDirect Materials Per UnitTotal Direct Labor CostCost Per PoundBeginning Direct Materials (Pounds)Units to be ProducedDesired Ending Direct Materials (Pounds)Direct Labor Cost Per HourTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Required for ProductionDirect Materials Purchases		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part		enter ae total amount of pounds for the first part
select between addition and deduction AddLess: select an item Total Required Direct Labor HoursTotal Direct Labor CostTotal Pounds Required for ProductionDesired Ending Direct Materials (Pounds)Direct Labor Cost Per HourTotal Materials RequiredDirect Materials Per UnitTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitCost Per PoundBeginning Direct Materials (Pounds)Direct Materials PurchasesUnits to be Produced		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the second part Direct Labor Cost Per HourTotal Pounds Required for ProductionDesired Ending Direct Materials (Pounds)Cost Per PoundTotal Direct Labor CostDirect Labor Time Per UnitDirect Materials PurchasesTotal Materials RequiredTotal Required Direct Labor HoursBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesUnits to be ProducedDirect Materials Per Unit		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part
select between addition and deduction AddLess: select an item Direct Materials PurchasesDirect Materials Per UnitDirect Labor Time Per UnitDirect Labor Cost Per HourTotal Required Direct Labor HoursTotal Materials RequiredBeginning Direct Materials (Pounds)Total Direct Labor CostTotal Pounds Required for ProductionUnits to be ProducedCost Per PoundTotal Cost of Direct Materials PurchasesDesired Ending Direct Materials (Pounds)		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the third part Units to be ProducedDirect Labor Time Per UnitTotal Materials RequiredDirect Labor Cost Per HourDirect Materials PurchasesTotal Direct Labor CostTotal Pounds Required for ProductionTotal Cost of Direct Materials PurchasesCost Per PoundDirect Materials Per UnitBeginning Direct Materials (Pounds)Desired Ending Direct Materials (Pounds)Total Required Direct Labor Hours		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part
select an item Direct Labor Time Per UnitDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Total Direct Labor CostBeginning Direct Materials (Pounds)Total Pounds Required for ProductionTotal Cost of Direct Materials PurchasesUnits to be ProducedTotal Required Direct Labor HoursDirect Materials Per UnitDirect Labor Cost Per HourTotal Materials RequiredCost Per Pound		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing direct materials budget item Total Materials RequiredDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Beginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Pounds Required for ProductionDirect Materials Per UnitTotal Direct Labor CostDirect Materials PurchasesCost Per PoundDirect Labor Time Per UnitUnits to be Produced		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount