Four 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 $210 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:- **Year 2:** - First: 98,000 bottles - Second: 128,000 bottles - Third: 188,000 bottles - Fourth: 138,000 bottles- **Year 3:** - First: 108,000 bottlesThe inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 78,400 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.---### Mink Caress#### Direct Materials Budget - Year 2| **Quarter** | **First** | **Second** | **Third** | **Fourth** | **Year** ||--------------|-----------|------------|-----------|------------|----------|| **Required production in units of finished goods** | | | | | || **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** | | | | | || **Cost of raw materials to be purchased** | | | | | |This table is designed to outline the required calculations and fill in the necessary data for completing the direct materials budget for the specified periods.

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

Four grams of musk oll 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 oll is $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production First 98,000 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 Second 128,000 Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2. Year 2 Budgeted production, in bottles The Inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 78,400 grams of musk oll will be on hand to start the first quarter of Year 2. First Third 188,000 Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 138,000 Third Year 3 First 108,000 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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f2 Four 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 $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. f3 First 92,000 Budgeted production, in bottles. The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 73,600 grams of musk oil will be on hand to start the first quarter of Year 2. f4 fs Second 122,000 First Mink Caress Direct Materials Budget - Year 2 f6 Year 2 Q Search 4- Third 182,000 Second f7…
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