**Transcription for Educational Website**---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:| | Year 2 | Year 3 ||---------------------|-------------------------|---------|| Budgeted production, in bottles | | || **Quarter** | **First** | **Second** | **Third** | **Fourth** | **First** || **Bottles** | 68,000 | 98,000 | 158,000 | 108,000 | 78,000 |The inventory of musk oil at the end of a quarter must equal 20% of the following quarter’s production needs. A total of 40,800 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.**Mink Caress** **Direct Materials Budget - Year 2**| | Quarter | Year ||--------------------------------------|------------------------------------------|--------|| | **First** | **Second** | **Third** | **Fourth** | || 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 | | | | | || Unit cost of raw materials | | | | | || Cost of raw materials to be purchased | | | | | |---**Diagram Explanation:**The table is designed to help calculate the direct materials budget needed for musk oil used in making Mink Caress perfume. The budget displays the planned quarterly production in units and leaves space to fill in details related to raw materials requirements and costs. The information includes:- Total production needs per quarter- Total units of raw materials needed- Units to be purchased, considering beginning inventory

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,440 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,100 4,400 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Units to produce Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget…
Stevenson Inc. budgeted production of 27,000 personal journals in 20Y6. Each journal requires assembly. Assume that four minutes are required to assemble each journal. If assembly labor costs $9.75 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.
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 $1.50 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 74,000 104,000 164,000 114,000 84,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 29,600 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.
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 $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: Year 2 Second Third 84,000 114,000 174,000 124,000 Year 3 First 94,000 First Fourth Budgeted production, in bottles 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 33,600 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. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished…
Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 634,000 units, estimated beginning inventory is 105,000 units, and desired below. ending inventory is 86,000 units. The quantities of direct materials expected to be used for each unit of finished product are given Material A 0.50 lb. per unit @ $0.73 per pound Material B 1.00 lb. per unit @ $2.24 per pound Material C 1.20 lb. per unit @ $1.21 per pound The dollar amount of material A used in production during the year is O $1,377,600 Ob $892,980 O $224,475 Od $231,410
Production of Peace products has been budgeted at 220,000 units for July. One unit of Peace products requires 5 kilos of raw material. The projected beginning and ending materials inventory for July are: Beginning inventory: 160,000 kilos Ending inventory: 40,000 kilos How many kilos of material should be purchased in July? Amounts must be in whole numbers. Example: 88,000 or (88,000)
Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34 per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down has budgeted production of chairs for the next four months as follows: Units March 3, 500 April 4,400 May 4,900 June 6,300 Inventory policy requires that sufficent plastic be in ending monthly inventory to satisfy 20 percent of the following month's production needs. The inventory of plastic at the beginning of March equals exactly the amount needed to satisfy the inventory policy. The ending inventory (grams) for March is 374,000 297,500 535,500 416,500
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 $1.90 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 68,000 98,000 158,000 108,000 78,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 40,800 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. Mink Caress Direct Materials Budget - Year 2 Quarter Year First Second Third Fourth 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 Unit cost of raw materials Cost of…
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 $1.60 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 90,000 120,000 180,000 130,000 100,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 72,000 grams of musk oil will be on hand to start the first quarter of Year 2. Prepare a direct materials budget for musk oil, by quarter and in total, for 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 Siberla. 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: Year 3 First 104,000 Year 2 Third Fourth First 94,000 124,000 184,000 134,000 Second Budgeted production, in bottles Musk oll 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 oill at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 75,200 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk ol, by quarter and in total, for Year 2. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished…
For each unit of finished goods Surf Inc. needs 3 pounds of material. The production budget is shown below for the next 4 months: Description Month 1 Month 2 Month 3 Month 4 Production Budget in Units 14,000.00 15,000.00 16,000.00 12,000.00 Prepare the material purchases budget and show the total cost of material to purchase based on the following for Months 1-3 Beg Inv Month 1 8,800.00 pounds of material Cost per pound $4.75 Required Ending Inventory 12% of next months requirement Description Month 1 Month 2 Month 3
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 $1.80 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 94,000 124,000 184,000 134,000 104,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 75,200 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.