Comprehensive Problems Part 8 Note: This section is a continuation from Part of the comprehensive problem. be sure you have completed Part A before attempting Part 8 You may have to refer back to data presented in Port A and use answers from Part when completing this section Genuine Spice Inc. began operations on January 1 of the current year. The company produces ent-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per cate, There selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: Cost Direct Materials Cost per Case DIRECT MATERIALS Cost Unite Behavior per Case per Unit Variable Variable 30. 0.30 Variable 12 bottles 0.50 100 30,02 12.00 Crear base Natural oils Bottle (-2) 9.00 6.00 $17.00 DIRECT LABOR Time per Case Cost Behavior Department Labor Rate per hour Direct Labor Com per Case 16.00 1:20 Variable 20 min $18.00 Mixing Piling Variable 14.40 5 25 min $7.20 FACTORY OVERHEAD Cost Behavior Total Cost US Mixed $600 Facility as Pred 14,000 Equipment depreciation Fived 4,300 Supplies Pied 660 $19,560 Part-August Budgets During suly of the current year, the management of Genuine Spice Ine, asked the controller to prepare Muguet manufacturing and income statement budgets. Demand was expected to be 1,500 cases at 5:00 per care for Mogust Inventory planning Information is provided as follow Pined Goods Inventory Care Cost 300 Estimated finished goods wery, August Desired finished good inventory, August 31 $12,000 7,000 175 Materials Inventory Materials Inventory Cream Bare Gile (ca.) 20 300 Bottles (bottle) 600 MO Estimated me very, August Desired mentry.gust 31 1.000 There was negligible work in proces Inventory somed for either the beginning or end of the month; thus, none was asumed. In otion, there was no change in the coat per unit or estimated unts per che operating data from Janury Required 5. Prepare the Augustroduction Datet. Enter al amounts as positive numbers 6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. Enter alt amounts as positive numbers. Genuine Spice Inc. Direct Materials Purchases Budget For the Month Ended August 31 Direct Materials Cream Base (ozs.) Natural Oils (ozs.) Bottles (bottles) Total Units required for production Plus desired ending inventory Total units required Less estimated beginning inventory Total materials to be purchased Unit price Total direct materials to be purchased