Answer and Explanation:
The Preparation of direct materials budget for the second quarter is prepared below:-
                                            <u>Rida, Inc., </u>
                              <u> Direct materials budget </u>
                                <u> for the second quarter</u>
<u>Particulars                                             Amount</u>
Units to be produced                             229,000
Material required per unit                      0.6
Material needed for production           137,400
Budgeted Ending Inventory                   63,960
(266,500 units × 0.60 pounds × 40%)
Total material requirements                    201,360
(137,400 + 63,960]
Beginning Inventory                                 (56,500)
materials to be purchased                        144,860
(201,360 - 56,500)
material Price per pound                           $179
Budgeted Cost of Direct
material purchases                                  $25,929,940
(144,860 × $179)
Here we assume 0.60 pounds of a key raw material instead of 613 pounds.