Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help to get the remaing answers Exercise 8-3 Direct Materials Budget [LO8-4] Three grams of musk oil are required for each bottle of

image text in transcribed
image text in transcribed I need help to get the remaing answers
Exercise 8-3 Direct Materials Budget [LO8-4] 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 $2.20 per gram Budgeted production of Mink Caress is given below by quarters for Year 2 and fc the first quarter of Year 3: Budgeted production, in bottles First 72,000 Year 2 Second Third 102,000 162,000 Fourth 112,000 Year 3 First 82,000 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 quarter's production needs. Some 43,200 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. (Round "Unit cost of raw materials" answers to 2 decimal places.) Mink Caress Direct Materials Budget - Year 2 Quarter First Second 72 non 102 000 Third 162 000 Fourth 112 onol Year 448 0001 o search O i 9 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 First Second 72,000 102,000 Units of raw materials needed per unit of finished goods 31 31 Units of raw materials needed to meet production 216,000 306,000 Add Desired units of ending raw materials inventory 61,200 97 200 Total units of raw materials needed Third 162,000 3 Fourth 112,000 31 336,000 Year 448,000 3 1,344,000 486,000 67,200 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Marketing

Authors: Bruno Camus

1st Edition

2708108735, 978-2708108738

More Books

Students also viewed these Accounting questions

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago

Question

d. What language(s) did they speak?

Answered: 1 week ago

Question

e. What difficulties did they encounter?

Answered: 1 week ago