Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Two 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 oil is $1.60 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Budgeted production, in bottles. Year 2 Year 3 First 76,000 Second 106,000 Third 166,000 Fourth 116,000 First 86,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 30,400 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. Units of raw materials needed per unit of finished goods Haite of row materials needed to meet production Mink Caress Direct Materials Budget - Year 2 First Quarter Second Third Fourth
Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Two 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 oil is $1.60 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Budgeted production, in bottles. Year 2 Year 3 First 76,000 Second 106,000 Third 166,000 Fourth 116,000 First 86,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 30,400 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. Units of raw materials needed per unit of finished goods Haite of row materials needed to meet production Mink Caress Direct Materials Budget - Year 2 First Quarter Second Third Fourth
Chapter1: Financial Statements And Business Decisions
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![Exercise 8-3 (Algo) Direct Materials Budget [LO8-4]
Two 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 oil is $1.60 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2
and the first quarter of Year 3:
Budgeted production, in bottles.
Year 2
Year 3
First
76,000
Second
106,000
Third
166,000
Fourth
116,000
First
86,000
The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of
30,400 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.
Units of raw materials needed per unit of finished goods
Haite of row materials needed to meet production
Mink Caress
Direct Materials Budget - Year 2
First
Quarter
Second
Third
Fourth](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53edddcb-639a-47eb-a409-e428cc3ea2f0%2F334f8eba-9de0-44c8-bebd-f14481712afb%2F0yaxxj9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-3 (Algo) Direct Materials Budget [LO8-4]
Two 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 oil is $1.60 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2
and the first quarter of Year 3:
Budgeted production, in bottles.
Year 2
Year 3
First
76,000
Second
106,000
Third
166,000
Fourth
116,000
First
86,000
The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of
30,400 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.
Units of raw materials needed per unit of finished goods
Haite of row materials needed to meet production
Mink Caress
Direct Materials Budget - Year 2
First
Quarter
Second
Third
Fourth
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