Prepare a direct materials budget for musk oil by quarter and in total for year two
Three grams of muskoll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the muskoll 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 Year First Second Third Fourth FEEST Hudgeted production in Bottles 66,000 96,000 156,000 106,000 76,000 The inventory of musk oll 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 Mink Caress Direct Materials Budget - Year 2 Quarter First Second Year Third Fourth Units of raw materials needed per unit of finished goods Units of raw materials needed to moet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials western Siberia. The cost of the muskollis 5180 per gram. Budgeted production of Mink Catess is given below by quarters for Year 2 and for the first quarter of Year 2: Year 2 Year First econd Third Youth FLINE mudgeted production, in botties 66,000 96,000 156,000 106,000 76.000 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 muskoll, by quarter and in total, for Year 2. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Year Third Fourth Units of raw material needed per unit of finished goods Units of raw materiale 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