Four grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of the fragrance is $1.50 per gram. Budgeted production of Floral is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 First Second Third Fourth 88,000 118,000 178,000 128,000 Year 3 First 98,000 00 The inventory of fragrance at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400 grams of fragrance will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for fragrance, by quarter and in total, for Year 2. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Floral Direct Materials Budget - Year 2 Quarter First Second Third Fourth 88,000 118,000 178,000 128,000 4 4 4 4 352,000 472,000 712,000 512,000 Year 98,000
Four grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of the fragrance is $1.50 per gram. Budgeted production of Floral is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 First Second Third Fourth 88,000 118,000 178,000 128,000 Year 3 First 98,000 00 The inventory of fragrance at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400 grams of fragrance will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for fragrance, by quarter and in total, for Year 2. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Floral Direct Materials Budget - Year 2 Quarter First Second Third Fourth 88,000 118,000 178,000 128,000 4 4 4 4 352,000 472,000 712,000 512,000 Year 98,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help fill out
Transcribed Image Text:Four grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of
the fragrance is $1.50 per gram. Budgeted production of Floral is given below by quarters for Year 2 and for the first quarter of Year 3:
Budgeted production, in bottles
Year 2
First Second Third Fourth
88,000 118,000 178,000 128,000
Year 3
First
98,000
00
The inventory of fragrance at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400
grams of fragrance will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for fragrance, by quarter and in total, for Year 2.
Units of raw materials needed per unit of finished goods
Units of raw materials needed to meet production
Add: Desired units of ending raw materials inventory
Total units of raw materials needed
Less: Units of beginning raw materials inventory
Units of raw materials to be purchased
Unit cost of raw materials
Cost of raw materials to purchased
Floral
Direct Materials Budget - Year 2
Quarter
First
Second
Third
Fourth
88,000
118,000
178,000
128,000
4
4
4
4
352,000
472,000
712,000
512,000
Year
98,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education