Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct mater
ID: 2488181 • Letter: R
Question
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It forecasts sales of 229,000 units in the second quarter and 266,500 units in the third quarter. It also plans production of 56,500 units for the third quarter. Based on this information, the company plans to produce 244,000 units in the second quarter. Other information is as follows:
Prepare a direct materials budget for the second quarter. (Round your per unit to 2 decimal places.)
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It forecasts sales of 229,000 units in the second quarter and 266,500 units in the third quarter. It also plans production of 56,500 units for the third quarter. Based on this information, the company plans to produce 244,000 units in the second quarter. Other information is as follows:
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It forecasts sales of 229,000 units in the second quarter and 266,500 units in the third quarter, it also plans production of 56,500 units for the third quarter. Based on this information, the company plans to produce 244,000 units in the second quarter. Other information is as follows: Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $179 per pound. The company plans to end each quarter with an ending inventory of materials equal to 40% of next quarter's budgeted materials requirements. Each finished unit requires 3 direct labor hours, at a cost of $9 per hour. Direct labor Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $490,000 per quarter Prepare a direct materials budget for the second quarter. (Round your per unit to 2 decimal places.) RIDA INO. Direct Materials Budget Second Quarter Units to be produced 244,000 units Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Total cost of direct materials purchasesExplanation / Answer
Rida Inc.
Direct materials Budget
Second Quarter
Units to be produced
244,000
Material requirements per unit
.60
Materials needed for production
146,400
Budgeted ending inventory(56,500*.6*40%)
13,560
Total materials requirement
159,960
Beginning inventory(146,400*40%)
58,560
Materials to be purchased
101,400
Material price per pound
$179
Total cost of direct materials purchased
18,150,600
Units to be produced
244,000
Material requirements per unit
.60
Materials needed for production
146,400
Budgeted ending inventory(56,500*.6*40%)
13,560
Total materials requirement
159,960
Beginning inventory(146,400*40%)
58,560
Materials to be purchased
101,400
Material price per pound
$179
Total cost of direct materials purchased
18,150,600
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