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Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberla.
Four grams of musk oll 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 oll is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for he first quarter of Year 3 : Musk oll has become so popular as a perfume ingredient that it has become necessary to carry large Inventorles as a precaution against stock-outs. For this reason, the inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter's oroduction needs. Some 80,000 grams of musk oll will be on hand to start the first quarter of Year 2 Required: Prepare a direct materlals budget for musk oll, by quarter and In total, for Year 2
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