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 $1.60 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 76,000 1,06,000 1,66,000 1,16,000 86,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 30,400 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.

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…

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…

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. THE BUDGETED PRODUCTION OF MINK CARESS IS GIVEN BELOW BY QUARTERS FOR YEAR 2 AND FOR THE FIRST QUARTER OF YEAR 3: Year 2 First Year 3 Secon Third Fourth First Budgeted production, in 68,000 98,000 1,58,000 1,08,000 78,000 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 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. WAYLAND MANUFACTURING USES A NORMAL COST SYSTEM AND HAD THE FOLLOWING DATA AVAILABLE FOR 2010: Direct materials purchased on account…