FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Four grams of musk oll 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 $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for
the first quarter of Year 3
First
100,000
Year 2
Second Third Fourth
130,000 190,000 140,000
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
Unt cost of raw materials
Cost of raw materiale to purchased
Year 3
First
110,000
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 80,000
grams of musk od will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2
Mink Caress
Direct Materials Dudget-Year 2
First Quarter Second Quarter Thind Quarter Fourth Quarter
Year
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Transcribed Image Text:Four grams of musk oll 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 $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3 First 100,000 Year 2 Second Third Fourth 130,000 190,000 140,000 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 Unt cost of raw materials Cost of raw materiale to purchased Year 3 First 110,000 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 80,000 grams of musk od will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2 Mink Caress Direct Materials Dudget-Year 2 First Quarter Second Quarter Thind Quarter Fourth Quarter Year
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