EXERCISE 9-3 Direct Materials Budget [LO4] 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 150 roubles per kilogram. (Siberia is located in Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles. 60,000 90,000 150,000 100,000 70,000 Musk oil has become so popular as a perfume ingredient that it has become necessary to carry Jarge 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 arams of musk oil will be on hand to start the first quarter of Year 2.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please help me excercise 9-3 particular. Thank you
M+
AC
Chapter 9
Required:
epare a direct materials budget for mnsk oil hy quarter and in total, for Year 2. At the bottom of
Jour budget, show the amount of purchases in roubles for each quarter and for the year in total.
EXERCISE 9-4 Direct Labor Budget [LO5]
The production manager of Rordan Corporation has submitted the following forecast of units to be
produced by quarter for the upcoming fiscal year:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarte
Units to be produced
8,000
6,500
7,000
7,500
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour.
Required:
Construct the company's direct labor budget for th
direct labor workforce is adjusted
duce the forecasted number of
1.
h quarter
roduce
ng fiscal
num
uming
equires
, assur
Transcribed Image Text:M+ AC Chapter 9 Required: epare a direct materials budget for mnsk oil hy quarter and in total, for Year 2. At the bottom of Jour budget, show the amount of purchases in roubles for each quarter and for the year in total. EXERCISE 9-4 Direct Labor Budget [LO5] The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarte Units to be produced 8,000 6,500 7,000 7,500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: Construct the company's direct labor budget for th direct labor workforce is adjusted duce the forecasted number of 1. h quarter roduce ng fiscal num uming equires , assur
UCCSS of preparing a production budget for the second quarter h's
The CUm
Required:
e?
Year 2
Year 3
First
Second
Third
Fourth
First
Budgeted production, in bottles .
60,000
90,000
150,000
100,000
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
of musk oil will be on hand to start the first quarter of Year 2.
grams
Transcribed Image Text:UCCSS of preparing a production budget for the second quarter h's The CUm Required: e? Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles . 60,000 90,000 150,000 100,000 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 of musk oil will be on hand to start the first quarter of Year 2. grams
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Determination of Tax Liability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education