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Question 3 5 grams of vitamin c infused oil is required per bottle of The body shop's skin brightening serum which is a very popular
Question 3 5 grams of vitamin c infused oil is required per bottle of The body shop's skin brightening serum which is a very popular product to reduce the number and intensity of dark spots. The cost of vitamin c infused oil is $2.25 per gram. Budgeted production of skin brightening serum is given below for year 2 and 3. YEAR 01 YEAR 03 Quarter 01 Quarter 02 Quarter 03 180,000 Quarter 04 120,000 70,000 100,000 60,000 Budgeted production of skin brightening serum bottles in The vitamin C infused oil is collected from the Red Algae extract from the north Atlantic, and that's why it has become necessary to carry large inventories as a precaution against stock out. The company's policy is to keep inventory of vitamin C infused oil at the end of a quarter equal to 30% of the following quarters production need. 40,000 grams of vitamin c infused oil will be in hand to start the first quarter of year 2. a. Prepare direct material budget for vitamin c infused oil, by quarter and in total, for year b. Show the cost of purchase of vitamin c infused oil for each quarter and for the year in total
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