Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 233,000 units in the second quarter and 270,500 units in the third quarter. Raw material inventory is 60,500 pounds at the beginning of the second quarter. Other information follows: Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $183 per pound. The company plans to end each quarter with an ending inventory of materials equal to 50% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. RIDA INC. Direct Materials Budget Second Quarter 233,000 units 0.60 pounds 139,800 pounds Units to be produced Materials requirement per unit erials needed for production (pounds) Budgeted ending inventory (pounds) Total materials requirements (pounds) Beginning inventory (pounds) (60,500) pounds Materials to be purchased (pounds) Material price per pound Budgeted cost of direct materials purchases 183.00 per pound $