Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Four grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk olil is $170 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 92,000 Units of raw materials needed per unit of finished goods Unts of rew materials needed to meet production Total units of raw materials needed Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materals to purchased Second 122,000 Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oill at the end of a quarter must equal 20% of the following quarter's production needs. A total of 73,600 grams of musk oil will be on hand to start the first quarter of Year 2. Third 182,000 Mink Caress Direct Materials Budget-Year 2 First Fourth 132,000 Second Quarter Year 3 First 182,000 Third 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 popular perfume made by a company in western Siberia. The cost of the musk olil is $170 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 92,000 Units of raw materials needed per unit of finished goods Unts of rew materials needed to meet production Total units of raw materials needed Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materals to purchased Second 122,000 Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oill at the end of a quarter must equal 20% of the following quarter's production needs. A total of 73,600 grams of musk oil will be on hand to start the first quarter of Year 2. Third 182,000 Mink Caress Direct Materials Budget-Year 2 First Fourth 132,000 Second Quarter Year 3 First 182,000 Third 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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