Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 245,000 units in the second quarter and 57,500 units in the third quarter. Each unit requires 0.50 pound of direct material, priced at $180 per pound. Starting with the second quarter, the company plans to end each quarter with an ending inventory of materials equal to 50% of next quarter’s budgeted direct materials required. Raw material inventory is 61,250 pounds at the beginning of the second quarter. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.)
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.
Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 245,000 units in the second quarter and 57,500 units in the third quarter. Each unit requires 0.50 pound of direct material, priced at $180 per pound. Starting with the second quarter, the company plans to end each quarter with an ending inventory of materials equal to 50% of next quarter’s budgeted direct materials required. Raw material inventory is 61,250 pounds at the beginning of the second quarter.
Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.)
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