Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve for the incorrect numerical values in year. Four grams of musk oil are required for each bottle of Mink Caress, a very popular

Please solve for the incorrect numerical values in year.
image text in transcribed
Four 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 $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 98,000 Required 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 Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 78,400 grams of musk oil will be on hand to start the first quarter of Year 2. 3 Second 128,000 > Answer is complete but not entirely correct. Mink Caress Direct Materials Budget - Year 2 55 Year 2 First 98,000 40 392,000 102,400 494,400 78.400 416,000 2.10 $ 873,600 Third 188,000 $ Second Quarter 128,000 40 512,000 150,400 662,400 102,400 560,000 2.10 $1,176,000 Fourth 138,000 Third 188,000 40 752,000 110,400 862,400 150,400 712,000 2.10 S $ 1.495.200 Fourth Year 3 First 108,000 138,000 4 552,000 86,400 638,400 110,400 528,000 2.10 $ $ 1,108,800 00 Year 552,000 30 2,208,000 449,600 X 2,657,600x 441,600x 2,216,000 $ 2.10 $ 4,653,600

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Libby, Short

6th Edition

978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881

More Books

Students also viewed these Accounting questions