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Exercise 20-10 (Algo Manufacturing: Direct materials budget LO P1 Electro Company budgets production of 640,000 electric panels in the second quarter and 710,000 electric panels in the third qua Each panel requires 0.80 pound of direct material at a cost of $2.00 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this mate is 102,400 pounds. Prepare a direct materials budget for the second quarter. ELECTRO COMPANY Direct Materials Budget Units to produce Second Quarter 640,000 units Materials needed for production (pounds) Total materials required Materials to purchase (pounds) Cost of direct materials purchases