Answer and Explanation:
The preparation of the direct material budget for the second quarter is presented below:
Rida Inc
Direct Materials Budget Second Quarter
Units to be produced 240,000 units
Materials requirement per unit 0.60 pounds
Materials needed for production (pounds) 144,000 pounds
Add: Budgeted ending inventory (pounds) 9,450 pounds
(52,500 units × 0.60 pounds × 30%)
Total materials requirements (pounds) 153,450 pounds
Less: Beginning inventory (pounds) 43,200 pounds
Materials to be purchased (pounds) 110,250 pounds
Multiply Material price per pound $175
Budgeted cost of direct materials $19,293,750
We added the ending inventory and deduct the beginning inventory to the production units so that the purchased units could come and then multiply it with the material price per pound so that the budgeted cost could come
