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Three grams of music oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia.
Three grams of music oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost ofthe musk oil is $2.20 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 3 First Second Third Fourth First Budgeted production, in bottles 22,063 102,003 162,806 112,606 32,060 The inventory of musk oil at the end ofa quarter must be equal to 20% of thefollowing 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. Unit cost of raw materials _____ Cost of raw maten'alsm purchased
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