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 Unit cost of raw materials Cost of raw materials to purchased काज S First 64,000 3 192,000 56,400 248,400 38,400 210,000 1.70 357,000 Second Quarter 94,000 3 282,000 92,400 374,400 56,400 318,000 S 1.70 $ 540,600 Fourth 104,000 3 462,000 312,000 62,400 44,400 524,400 356,400 92,400 62,400 432,000 294,000 S 1.70 $ 1.70 $ 734,400 $ 499,800 Third 154,000 3 Year 416,000 3 1,248,000 44,400 1,292,400 38,400 1,254,000 S 1.70 $ 2,131,800
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
explain in details how you get “Less: Beg. inventory” please thanks
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![Exercise 8-3 (Algo) Direct Materials Budget [LO8-4]
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 $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for
the first quarter of Year 3:
First
64,000
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
Unit cost of raw materials
Cost of raw materials to purchased
Required:
Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2.
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 38,400
grams of musk oll will be on hand to start the first quarter of Year 2.
Second
94,000
IS
$
Answer is complete and correct.
Mink Caress
Direct Materials Budget - Year 2
First
64,000
3
Year 2
192,000
56,400
248,400
38,400
210,000
357,000
Third
154,000
1.70 S
Second
Quarter
94,000
3
282,000
92,400
374,400
56,400
318,000
1.70
$ 540,600
Fourth
104,000
Third
$
154,000
3
462,000
62,400
524,400
92,400
432,000
1.70
$734,400
Fourth
Year 3
First
74,000
104,000
3
312,000
44,400
356,400
62,400
294,000
1.70
$ 499,8
Year
416,000
3
1,248,000
44,400
1,292,400
38,400
1,254,000
1.70
$
$ 2,131,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3466162f-1d72-43a1-94cb-31ddbe890b27%2Fe3ee1b07-cc5f-4cd1-ae3d-6d3857c0921a%2F3ncl6i_processed.png&w=3840&q=75)
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