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I need help for the fourth year :( Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume
I need help for the fourth year :(
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western 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: Year 2 First Second Third Fourth 66,000 96,000 156,000 106,000 Year 3 First 76,000 Budgeted production, in bottles 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 quarter's production needs. Some 39,600 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.) Mink Caress Direct Materials Budget-Year 2 Quarter Second Third Fourth Year equired 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 66,000 96,000 156,000 106,000 424,000 198,000 57,600 255,600 39,600 216,000 288,000 93,600 381,600 57,600 324,000 468,000 63,600 531,600 93,600 438,000 318,000 1,272,000 ess: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased 63,600 39,600 1.80 $ 1.80 $ 1.80 $ 1.80 $ 1.80 $ 388,800$ 583,200$788,400Step by Step Solution
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