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For the most part I understand this, but i am not sure how to get the Desired units of ending raw materials inventory for the
For the most part I understand this, but i am not sure how to get the Desired units of ending raw materials inventory for the fourth quarter. can someone explain how to calculate the assumption? Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a company in 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: small western 16.66 points Year 2 PirstSecond Third Fourth Pirst 90,000 Dudgeted production, in bottles 80,000 110,000 170,000 120,000 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 quarters production needs. Some 32.000 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.) Answer is not complete. Mink Caress Direct Materials Budget Year 2 Quarter First Third Fourth 80,00011 10000 480,000 Units of raw materials needed per unit of finished goods 60,000 240,000 Units of raw materials needed to meel production0000 220000 340.000 40,00 220,000 340,000
For the most part I understand this, but i am not sure how to get the Desired units of ending raw materials inventory for the fourth quarter. can someone explain how to calculate the assumption?
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