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.
