Three grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. Thecost of the musk oil is $1.90 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter ofYear 3:Required:Prepare a direct materials budget for musk oil, byUnits of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionFirst68,000Total units of raw materials neededUnits of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedSecond98,000Year 2Budgeted production, in bottlesThe inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 40,800 gramsof musk oil will be on hand to start the first quarter of Year 2.Third158,000arter and in total, for Year 2.Mink CaressDirect Materials Budget - Year 2FirstFourth108,000SecondQuarterYear 3First78,000ThirdFourthYear

Thew question is based on the concept of Cost Accounting.Direct materials purchase budget is based…

Three 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 $1.90 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 Units of raw materials needed to meet production First 68,000 Total units of raw materials needed Second 98,000 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Year 2 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 equal 20% of the following quarter's production needs. A total of 40,800 grams of musk oil will be on hand to start the first quarter of Year 2. Third 158,000 Mink Caress Direct Materials Budget - Year 2 First Fourth 108,000 Second Quarter Year 3 First 78,000 Third Fourth Year

Three 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 $1.90 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 Units of raw materials needed to meet production First 68,000 Total units of raw materials needed Second 98,000 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Year 2 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 equal 20% of the following quarter's production needs. A total of 40,800 grams of musk oil will be on hand to start the first quarter of Year 2. Third 158,000 Mink Caress Direct Materials Budget - Year 2 First Fourth 108,000 Second Quarter Year 3 First 78,000 Third Fourth Year

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

See similar textbooks

Similar questions

Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Three 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 $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 70,000 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 Second 100,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Year 2 Budgeted production, in bottles The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 42,000 grams of musk oil will be on hand to start…
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 $2.10 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 Units of raw materials needed to meet production First 98,000 Total units of raw materials needed Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second 128,000 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 equal 20% of the following quarter's production needs. A total of 78,400 grams of musk oil will be on hand to start the first quarter of Year 2. Third 188,000 Mink Caress Direct Materials Budget - Year 2 First Fourth 138,000 Second Quarter Year 3 First 108,000 Third…
Two 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: Budgeted production, in bottles First 76,000 Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second Third Fourth 106,000 166,000 116,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 30,400 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. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Mink Caress Direct Materials Budget - Year 2 Second First Quarter Year 3 First 86,000 Third…
Two 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 $1.70 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 78,000 108,000 168,000 118,000 88,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 31,200 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.
Three grams of musk oll are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oll is $1.50 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Budgeted production, in bottles Year 2 First 60,000 Second 90,000 Third 150,000 Fourth 100,000 Year 3 First 70,000 The Inventory of musk oll at the end of a quarter must equal 20% of the following quarter's production needs. A total of 36,000 grams of musk oll 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 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 fo be purchased Unit cost of raw materials Cost of raw materials to purchased Mink Caress Direct Materials Budget - Year 2 Quarter Year First Second…
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by asmall company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia is locatedin Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given below by quartersfor Year 2 and for the first quarter of Year 3:Year 2 Year 3First Second Third Fourth FirstBudgeted production, in bottles ...... 60,000 90,000 150,000 100,000 70,000Musk oil has become so popular as a perfume ingredient that it has become necessary to carry largeinventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of aquarter must be equal to 20% of the following quarter’s production needs. Some 36,000 grams of musk oilwill 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. At the bottom of yourbudget, show the amount of purchases in roubles…
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 oll is $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: 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 First 98,000 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 Second 128,000 Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2. Year 2 Budgeted production, in bottles The Inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 78,400 grams of musk oll will be on…
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,400 units September 23,100 units October 24,500 units November 25,700 units December 25,400 units The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 12,600 kilograms of Jurislon were on hand. The cost of Jurislon is $25 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurislon to be purchased in August 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: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production First 92,000 Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Year 2 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Second 122,000 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. First Third 182,000 Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 132,000 Third Year…
Three 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 $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: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 72,000 102,000 162,000 112,000 82,000 Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 43,200 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. (Round "Unit cost of raw materials" answers to 2 decimal places.)