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Please calculate the values. Exercise 1 (adapted from Management Accounting, 2014 6th Edt) Part 1. Three grams of musk oil are required for each bottle
Please calculate the values.
Exercise 1 (adapted from Management Accounting, 2014 6th Edt) Part 1. Three grams of musk oil are required for each bottle of Mink Caress, a very limited luxury perfume made by a small company in Western Siberia (Russia). The cost of the musk oil is 150 roubles 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 quarter Year 3 quarter First Second Third Fourth First Budgeted production, in bottles 60 000 90 000 150 000 100 000 70 000Musk oil has become so popular as a perfume base that it has become necessary to carry large inventories as a precaution against inventory 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 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required. Prepare a materials purchases budget for musk oil, by quarter and in total, for Year 2. At the bottom of your budget, show the amount of purchases in roubles for each quarter and for the year in total. Fill in the missing numbers using the information provided above. Year 2 quarter Year 3 quarter First Second Third Fourth First Budgeted production 60000 90000 150000v 100000 70000 Raw meterials needed per unit 3 V 3 3 v 3 3 V Production needs (grams) X X X X 210000 Desired ending inventory 54000 X X Total needs (grams) X X Beginning inventory X 54000 X Raw materials to be purchased X X X X Cost of raw materials to be purchased X X 63 000 000Step by Step Solution
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