Four ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, California. The zinc oxide cost is $170 per ounce Budgeted production of Hawallan Gold is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles First 92, eee Year 2 Second Third Fourth 122,000 182,000 132, eee Year 3 First 102,000 There is a high demand for zinc oxide which requires the company to have large inventories of the ingredient in case of a shortage. For this reason, the zinc oxide inventory at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2 Hawaiian Gold Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Un cost of raw materials Cost of raw materials to purchased 5 1.703 1.703 1.703 1.705 1 70 Four ounces of zinc oxide are required for each bottle of Hawallan Gold, a suntan lotion made in Orange cost is $1.70 per Ounce. Budgeted production of Hawallan Gold is given below by quarters for Year 2 and Year 2 Second Third 122, eee 182,eee First 92,eee Budgeted production, in bottles Year 3 First 102, eee Fourth 132, eee There is a high demand for zinc oxide which requires the company to have large inventories of the ingre shortage. For this reason, the zinc oxide Inventory at the end of a quarter must be equal to 20% of the fo needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for Zinc oxide, by quarter and In total, for Year 2. Hawaiian Gold Direct Materials Budget - Year 2 Quarter First Second Third Fourth Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materiais needed be equal to needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2 Hawaiian Gold Direct Materials Budget - Year 2 Quarter First Second Third Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased S 1.70 1.70S Year 2 Second Third 122, eee 182,000 First 92,000 Budgeted production, in bottles Year First 182,000 Fourth 132,000 There is a high demand for zinc oxide which requires the company to have large inventories of the ingredient in shortage. For this reason, the zinc oxide Inventory at the end of a quarter must be equal to 20% of the following needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2 Hawaiian Gold Direct Materials Budget - Year 2 Quarter First Second Third Fourth Estimated sales in units of finished goods Required production in units of finished goods S 1.7013 1.70 s 1.70 1.70 $ Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased There is a high demand for zinc oxide which requires the company to have large inventories of the in shortage. For this reason, the zinc oxide Inventory at the end of a quarter must be equal to 20% of th needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2 Hawaiian Gold Direct Materials Budget-Year 2 Quarter First Second Third Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production IR 1.70s 1.70 $ 1.70 $ Add: Desired units of ending raw materials inventory Add: Units of beginning raw materials inventory Less: Desired units of ending raw materials inventory Less: Units of beginning raw materials inventory Budgeted production, in bottles First 92,000 Second 122,000 Third 182,000 Fourth 132,000 First 182,eee There is a high demand for zinc oxide which requires the company to have large Inventories of the ingredient in case shortage. For this reason, the zinc oxide Inventory at the end of a quarter must be equal to 20% of the following quarte needs. Some 73,600 ounces of zinc oxide will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for zinc oxide, by quarter and In total, for Year 2 Hawaiian Gold Direct Materials Budget Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed GAME o s 1703 1.70$ Add: Desired units of ending raw materials inventory Add Units of beginning raw materials inventory Less Desired units of ending raw materials Inventory Less: Units of beginning raw materials inventory