Exercise 8-3 (Algo) Direct Materials Budget [LO8-4]Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in westernSiberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and forthe first quarter of Year 3:Units of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionFirst88,000Total units of raw materials neededUnits of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedSecond118,000Required:Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.Year 2Budgeted production, in bottlesThe inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400grams of musk oil will be on hand to start the first quarter of Year 2.FirstThird178,000Mink CaressDirect Materials Budget - Year 2SecondQuarterFourth128,000ThirdYear 3First98,000FourthYear

Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 88,000 Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Second 118,000 Year 2 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. First Third 178,000 Budgeted production, in bottles The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400 grams of musk oil will be on hand to start the first quarter of Year 2. Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 128,000 Third Year 3 First 98,000 Fourth Year

Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 88,000 Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Second 118,000 Year 2 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. First Third 178,000 Budgeted production, in bottles The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400 grams of musk oil will be on hand to start the first quarter of Year 2. Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 128,000 Third Year 3 First 98,000 Fourth Year

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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Saved en hrc produces lesther handbags The production budget for the next four months is July 5,200 units, August 7,600, September 7,500, October 31 8300 Each handbag requires 19 hous of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (pald $23 per hour), What will be the total abor cost for the morth of August? Matple Croce ST75.950 $E59 360 $125 350 $TAB00
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WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further Product X 2,500 $ 23.00 $ 2.00 Product Y 3,000 $ 24.00 $ 4.00 Product Z 4,000 $ 25.00 $ 4.00 $ 27.00 $ 27.00 $ 32.00 The cost of the joint raw material input is $92,000. Which of the products should be processed beyond the split-off point? Product Y ABCD A) Product X yes Product Z yes no B) yes no yes c) no yes no D) no yes yes
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Pasadena Candle Inc. budgeted production of 710,000 candles for the January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,800 pounds. The desired January 31 wax inventory is 13,200 pounds. If candle wax costs $1.50 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 Year 3 First Second Third Fourth First 60,00090,000150,000100,000 70,000 Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.
7. Question Content Area Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Units October 41,000 November 80,000 December 60,000 January 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following month’s production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15…
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Four welding units, with a lease cost of $11,000 per year per unit • Six welding employees each paid a salary of $51,000 per year (A total of 12,000 welding hours are supplied by the six workers.) • Welding supplies: $400 per job • Welding hours: 4 hours used per job During the year, the activity operated at 85 percent of capacity and incurred the following actual activity and resource costs. • Lease cost: $44,000 • Salaries: $321,300 • Parts and supplies: $1,014,900 1. Prepare a performance report for the welding activity. In the last column of Foy Company Activity-Based Performance Report, if variance amount is unfavorable select "U" , select "F", if it is Favorable and select "NA" if there is no variance. Foy Company Activity-Based Performance Report Activity Actual Cost Budgeted Cost…
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