Exercise 7-7 (Algo) Manufacturing: Direct materials budget LO P1 Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 242,000 units in the second quarter and 54,500 units in the third quarter. Each unit requires 0.60 pound of direct material, priced at $177 per pound. Starting with the second quarter, the company plans to end each quarter with an ending inventory of materials equal to 40% of next quarter's budgeted direct materials required. Raw material inventory is 58,080 pounds at the beginning of the second quarter. Prepare a direct materials budget for the second quarter. Note: Enter "per unit" answers in two decimal places. Units to produce RIDA INCORPORATED Direct Materials Budget Materials needed for production (pounds) Total materials required Materials to purchase (pounds) Cost of direct materials purchases Second Quarter 242,000 units

Q: OCF analysis

A: Operating Cashflow Analysis  = Net Income + Depreciation and Amortization- Net Working capital

Q: July 12: Paid amount owed to Tabby Company. Activity Operating v Accounts Cash Decrease, Account…

A: Transaction: It is an event between a buyer and seller which involves money. It is an exchange of…

Q: Explain CMO Mechanics?

A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…

Q: Service- industry example

A: Service industry: A service industry is an economic sector that delivers particular intangible…

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: Explain Matching Principles?

A: Matching concept is an accounting principle which explains the need to match revenue with the…

Q: Kela Corporation reports net income of $550,000 that includes depreciation expense of $77,000. Also,…

A: Note: Amount borrowed through notes payable will be included under cash flow from financing…

Q: Ifrs solution

A: According to the question given, we need to prepare the journal entries, and, the impairment…

Q: Explain red herring

A: Red herring It is an introductory prospectus recorded with the Securities and Exchange Commission…

Q: I need examples

A: Skimming fraud can be possible in business or personal basis. It is white collor crime. Generally It…

Q: Explain the benefits of JIT.

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: Define TED spread

A: The term TED spread stands for Treasury Euro Dollar Spread. It can be defined as the credit…

Q: Define value drivers

A: Introduction: Value drivers are related to concept of free cash flow valuation model. This helps the…

Q: Define embedded options

A: Embedded options are considered to be very much beneficial for both individuals as investors &…

Q: Help needed

A:

Q: Define call protection

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Analyze AIS development

A: Accounting Information System( AIS) development refers to the process of creating, designing,…

Q: Define synergy

A:

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.