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...

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Extracted text: 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. Prepare a direct materials budget for the second quarter. Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company Direct materials plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements.