Three 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 $1.70 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 Year 2 Year 3 First 64,000 Second 94,000 Third 154,000 Fourth 104,000 First 74,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 38,400 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 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Mink Caress Direct Materials Budget - Year 2 First Quarter Year Second Third Fourth

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Three 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 $1.70 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
Year 2
First
64,000
Second
94,000
Third
154,000
Fourth
104,000
Year 3
First
74,000
The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 38,400 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
Units of raw materials to be purchased
Unit cost of raw materials
Cost of raw materials to purchased
Mink Caress
Direct Materials Budget - Year 2
First
Quarter
Year
Second
Third
Fourth
Transcribed Image Text:Three 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 $1.70 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 Year 2 First 64,000 Second 94,000 Third 154,000 Fourth 104,000 Year 3 First 74,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 38,400 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 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Mink Caress Direct Materials Budget - Year 2 First Quarter Year Second Third Fourth
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