Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in wes

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Two Grams Of Musk Oil Are Required For Each Bottle Of Mink Caress A Very Popular Perfume Made By A Small Company In Wes 1 (44.4 KiB) Viewed 36 times

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 $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 80,000 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 Year 2 Second 110,000 Required: Prepare a direct materials budget for musk oil, 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 32,000 grams of musk oil will be on hand to start the first quarter of Year 2. First Third 170,000 Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 120,000 Third Year 3 First 90,000 Fourth Year