Question: Electro Company budgets production of 570,000 transmissions in the second quarter and 645,000 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 91, 200 pounds. Direct materials cost $1.82 per pound. Prepare a direct materials budget for the second quarter.
