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 $1.60 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 Unds of raw materials needed to meet production First 90,000 Total units of raw materials needed Second 120,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Year 2 Budgeted production, in bottles 180,000 The Inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs A total of 72,000 grams of musk oil will be on hand to start the first quarter of Year 2 Mink Caress Direct Materials Budget-Year 21 First Fourth 130,000 Second Quarter Year 3 First 100,000 Third Fourth Year

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 $1.60 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 Unds of raw materials needed to meet production First 90,000 Total units of raw materials needed Second 120,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Year 2 Budgeted production, in bottles 180,000 The Inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs A total of 72,000 grams of musk oil will be on hand to start the first quarter of Year 2 Mink Caress Direct Materials Budget-Year 21 First Fourth 130,000 Second Quarter Year 3 First 100,000 Third Fourth Year

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 3BE

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