Four grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. Thecost of the musk oil is $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter ofYear 3:Units of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionFirst98,000Total units of raw materials neededYear 2Units of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedSecond128,000Required:Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.Budgeted production, in bottlesThe inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 78,400 gramsof musk oil will be on hand to start the first quarter of Year 2.Third188,000Mink CaressDirect Materials Budget - Year 2FirstFourth138,000SecondQuarterYear 3First108,000ThirdFourthYear

Lets understand the basics.Budget is an estimation of future profit and loss in current period.The…

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 oil is $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 98,000 Year 2 Second 128,000 Third 188,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 78,400 grams of musk oil will be on hand to start the first quarter of Year 2. Fourth 138,000 Mink Caress Direct Materials Budget - Year 2 Year 3 First 108,000 Quarter

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 oil is $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 98,000 Year 2 Second 128,000 Third 188,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 78,400 grams of musk oil will be on hand to start the first quarter of Year 2. Fourth 138,000 Mink Caress Direct Materials Budget - Year 2 Year 3 First 108,000 Quarter

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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