Please help me Exercise 8-3 (Algo) Direct Materials Budget [LO8-4]Two 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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and forthe first quarter of Year 3:First74,000Estimated sales in units of finished goodsUnits of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionAdd: Desired units of ending raw materials inventoryTotal units of raw materials neededLess: Units of beginning raw materials inventoryUnits of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedBudgeted production, in bottlesThe inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 29,600grams of musk oil will be on hand to start the first quarter of Year 2.Required:Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.Year 2✔Second Third Fourth104,000 164,000 114,000✓Mink CaressDirect Materials Budget - Year 2FirstSecondQuarterQuarter$X Answer is not complete.74,000 ✓2✔148,00041,600✔189,600✔(29,600)✓1.50 $104,000✔2✔208,00065,600✔273,600✔(41,600) ✔1.50Year 3First84,000$ThirdQuarter164,0002✔328,00045,600✔373,600✔(65,600)✓1.50 $FourthQuarter114,000 ✓2✔228,00016,800 X224,800(45,600)✓1.50 $Year456,000✔2✔912,000169,600 x1,081,600(16,800) x1.50

Calculation of direct materials budget for Year 2 as follows: The transcript of above image is as…

Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Two 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: First 74,000 Year 2 Second Third Fourth 104,000 164,000 114,000 Year 3 First 84,000 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 29,600 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.

Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Two 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: First 74,000 Year 2 Second Third Fourth 104,000 164,000 114,000 Year 3 First 84,000 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 29,600 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 3CE: Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls....

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