f2Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in westernSiberia. 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 forthe first quarter of Year 3:Units of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionTotal units of raw materials neededUnits of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedRequired:Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.f3First92,000Budgeted 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 73,600grams of musk oil will be on hand to start the first quarter of Year 2.f4fsSecond122,000FirstMink CaressDirect Materials Budget - Year 2f6Year 2Q Search4-Third182,000Secondf7QuarterThirdFourth132,000fgFourth< Prev.Year 3First102,000fg1 of 1lyi144Yearf10Next >4fnDDI

The budgeted income statement gives a clear and organized summary of predicted financial…

grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made b a. The cost of the musk oil is $1.70 per gram. Budgeted production of Mink Caress is given be st quarter of Year 3: First 92,000 Second 122,000 Year 2 Third 182,000 Mink Caross geted production, in bottles. nventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's pro s of musk oil will be on hand to start the first quarter of Year 2. ired: are a direct materials budget for musk oil, by quarter and in total, for Year 2. Fourth 132,000

grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made b a. The cost of the musk oil is $1.70 per gram. Budgeted production of Mink Caress is given be st quarter of Year 3: First 92,000 Second 122,000 Year 2 Third 182,000 Mink Caross geted production, in bottles. nventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's pro s of musk oil will be on hand to start the first quarter of Year 2. ired: are a direct materials budget for musk oil, by quarter and in total, for Year 2. Fourth 132,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February March. 14,000 units 15,500 units April.. 11,900 units May June. 12,600 units 14,500 units The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget. The total cost of Material A to be purchased in February is: $45,200 O $34,320 O $42,900 O $39.440
The Sock company buys hiking socks for GHS6 per pair and sells them for GHs 10. Management budgets monthly fixed costs of GHS 12.000 for sales volume between O and 12,000 pairs. Required: Consider the following questions separately by using the foregoing information each time. 1. The Sock Company plans to advertise in hiking magazines. The advertising campaign will increase total fixed costs by GHS2,000 per month. Calculate the new breakeven point in units. 2. In addition to selling hiking socks, the Sock Company would like to start selling sports socks. The Sock Company expects to sell one pair of hiking socks for every three pairs of sports socks. The Sock Company will buy the sports socks for GHS 4 per pair and sell them for GHS 8 per pair. Total fixed costs will stay at GHS 12,000 per month. Calculate the breakeven point in units for both hiking socks and sports socks
Sunland Company estimates its sales at 180000 units in the first quarter and that sales will increase by 17000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $5273500. O $3026500. O $4387000. O $6057389.
Soft and Silky, Inc., manufactures bedding sets. The budgeted production is for 53,000 comforters in the coming year. Each comforter requires 6 yards of material. The estimated January 1 beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, what is the materials budget for the coming year? a.$385,500 b.$478,500 c.$475,500 d.$477,000
Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign--in row 31.) 2018 Jan Feb Q1 Total April Budget #3: Direct Materials Budget Budgeted units to be produced Mar 30,800 25,200 19,200 2.00 Direct materials (pounds) per unit 2.00 Direct materials needed for production 50,400 38,400 12,600 2.00 61,600 8,600 Plus: Desired direct materials in ending inventory (pounds) 15,400 Total direct materials needed 51,000 65,800 70,200 Less: Direct materials in beginning inventory (pounds) 9,500 12,600 15,400 Budgeted purchase of direct materials 41,500 53,200 54,800 Direct material…
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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 Year 3 First Second Third Fourth First 60,00090,000150,000100,000 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 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.
Tucker Inc. needs 5kg of meat to make its dog treats per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following month's production On March 31, 13,000 kg of material are on hand. Material cost is $0.40 per kg How much raw material needs to be purchased in April given the following production budget April May June July Production 26,000 46, 000 29, 000 101, 000 13, 000 140,000 153, 000 26,000
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 First 76,000 Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second Third Fourth 106,000 166,000 116,000 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 Units of raw materials needed to meet production Total units of raw materials needed Mink Caress Direct Materials Budget - Year 2 Second First Quarter Year 3 First 86,000 Third…
Crane, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 85000 units, September 70000 units, October 60000 units. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 190000 ounces of plastic were on hand. The cost of plastic is $0.02 per gram. How much is the ending inventory of plastic to be reported on the company’s balance sheet at September 30? $2400 $120000 $7000 $2800
Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st QuarterNext Year Forecasted production (gallons) 5,000 7,000 9,000 12,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual select an opening purchase…
Toblerone Chocolate Company produces high quality chocolates and candles for sales throughout the world. It's budgeted production for ned year as Multiple Choice O 63,200 pounds First 10,000 62,400 pounds Quarter Production in units Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials mventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: Second 12,000 Third 16,000 Fourth 14,000
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: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production First 98,000 Total units of raw materials needed Year 2 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 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. Third 188,000 Mink Caress Direct Materials Budget - Year 2 First Fourth 138,000 Second Quarter Year 3 First 108,000 Third…