Four grams of musk oil are required for each bottle of Mink Caress, a popular perfume...
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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 $1.80 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 94,000 Second 124,000 Third 184,000 Fourth 134,000 Year 3 First 104,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 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. 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 Mink Caress Direct Materials Budget - Year 2 Quarter Year First Second Third Fourth 94,000 124,000 184,000 134,000 536,000 4 4 4 4 376,000 496,000 736,000 99,200 147,200 107,200 536,000 83,200 475,200 643,200 843,200 619,200 2,144,000 83,200 2,227,200 75,200 99,200 147,200 107,200 75,200 400,000 544,000 696,000 512,000 2,152,000 $ $ 720,000 1.80 $ $ 1.80 $ 1.80 $ 1.80 $ 1.80 979,200 $ 1,252,800 $ 921,600 $ 3,873,600 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 $1.80 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 94,000 Second 124,000 Third 184,000 Fourth 134,000 Year 3 First 104,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 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. 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 Mink Caress Direct Materials Budget - Year 2 Quarter Year First Second Third Fourth 94,000 124,000 184,000 134,000 536,000 4 4 4 4 376,000 496,000 736,000 99,200 147,200 107,200 536,000 83,200 475,200 643,200 843,200 619,200 2,144,000 83,200 2,227,200 75,200 99,200 147,200 107,200 75,200 400,000 544,000 696,000 512,000 2,152,000 $ $ 720,000 1.80 $ $ 1.80 $ 1.80 $ 1.80 $ 1.80 979,200 $ 1,252,800 $ 921,600 $ 3,873,600
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Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
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