Three ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, California. The zinc oxide cost is $1.70 per ounce. Budgeted production of Hawaiian Gold is given below by quarters for Year 2 and for the first quarter of Year 3:

	Year 2					Year 3
	First	Second	Third	Fourth		First
Budgeted production, in bottles	64,000	94,000	154,000	104,000		74,000

There is a high demand for zinc oxide which requires the company to have large inventories of the ingredient in case of a shortage. For this reason, the zinc oxide inventory at the end of a quarter must be equal to 20% of the following quarters production needs. Some 38,400 ounces of zinc oxide will be on hand to start the first quarter of Year 2.

Required:

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