Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 275,000 units in the second quarter and 61,500 units in the third quarter. Each unit requires 0.40 pounds of direct material, priced at $184 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 55,000 pounds at the beginning of the second quarter.

Prepare a direct materials budget for the second quarter. (Enter "per unit" answers to two decimal places.)

Direct Materials Budget
Second Quarter

- Units to produce: 275,000 units
- Materials required per unit: 0.40 pounds
- Materials needed for production: \( 275,000 \text{ units} \times 0.40 \text{ pounds/unit} = 110,000 \text{ pounds} \)
- Add: Desired ending materials inventory: \( 61,500 \text{ units} \times 0.40 \text{ pounds/unit} \times 50\% = 12,300 \text{ pounds} \)
- Total materials required: \( 110,000 \text{ pounds} + 12,300 \text{ pounds} = 122,300 \text{ pounds} \)
- Less: Beginning materials inventory: 55,000 pounds
- Materials to purchase: \( 122,300 \text{ pounds} - 55,000 \text{ pounds} = 67,300 \text{ pounds} \)
- Materials cost per pound: $184 per pound
- Cost of direct materials purchases: \( 67,300 \text{ pounds} \times \$184/\text{pound} = \$12,383,200 \)

Direct Materials Budget for the Second Quarter
- Units to produce: 275,000 units
- Materials required per unit: 0.40 pounds
- Materials needed for production: 110,000 pounds
- Add: Desired ending materials inventory: 12,300 pounds
- Total materials required: 122,300 pounds
- Less: Beginning materials inventory: 55,000 pounds
- Materials to purchase: 67,300 pounds
- Materials cost per pound: $184
- Cost of direct materials purchases: $12,383,200