Alpesh Four 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 $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and forthe first quarter of Year 3:First92,000Required production in units of finished goodsUnits of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionAdd: Desired units of ending raw materials inventoryTotal units of raw materials neededLess: Units of beginning raw materials inventoryUnits of raw materials to be purchasedUnit cost of raw materialsSecond122,000Required:Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.$Budgeted 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 73,600grams of musk oil will be on hand to start the first quarter of Year 2.Mink CaressDirect Materials Budget - Year 2FirstYear 2Answer is not complete.92,0004368,00097,600465,60073,600392,00033Third182,0001.70 $SecondQuarter122,0004488,000145,600633,60097,600536,0001.703333$Fourth132,000Third182,0004728,000105,600833,600145,600688,0001.70 $Year 3First102,000Fourth132,0004528,00081,600609,600105,600504,0001.70$Year528,00042,112,0001.70

The budget is prepared to estimate the requirements for the period. The direct materials budget is…

Four 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 92,000 Year 2 Second 122,000 Third 182,000 Fourth 132,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Year 3 First 102,000 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 73,600 grams of musk oil will be on hand to start the first quarter of Year 2.

Four 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 92,000 Year 2 Second 122,000 Third 182,000 Fourth 132,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Year 3 First 102,000 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 73,600 grams of musk oil will be on hand to start the first quarter of 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 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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