Question
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 246,000 units in
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 246,000 units in the second quarter and 58,500 units in the third quarter. Raw material inventory is 88,560 pounds at the beginning of the second quarter. Other information follows: Direct materials Each unit requires 0.60 pounds of raw material, priced at $181 per pound. The company plans to end each quarter with an ending inventory of materials equal to 60% of next quarters budgeted materials requirements. Prepare a direct materials budget for the second quarter.
RIDA INC.Direct Materials BudgetSecond QuarterUnits to be produced246,000unitsMaterials needed for production (pounds)Total materials requirements (pounds)Materials to be purchased (pounds)Budgeted cost of direct materials purchases
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