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Electro Company budgets production of 530,000 transmissions in the second quarter and 605,000 transmissions in the third quarter. Each transmission requires 0.8 pounds of a key raw material. Electro Company aims to end each quarter with an ending inventory of direct materials equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this raw material is 84,800 pounds. Direct materials cost $1.78 per pound. Prepare a direct materials budget for the second quarter. 530,000 units 0.80 lbs. 424,000 lbs. ELECTRO COMPANY Direct Materials Budget Second Quarter Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases 84,800 $ 1.78 per lb