Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows: Direct materials Each unit requires 0.60 pounds of raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to be produced RIDA INC. Direct Materials Budget Second Quarter Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Budgeted cost of direct materials purchases 240,000 units

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows: Direct materials Each unit requires 0.60 pounds of raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to be produced RIDA INC. Direct Materials Budget Second Quarter Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Budgeted cost of direct materials purchases 240,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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