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Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia.
Three 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 $170 per gram Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 64.000 Budgeted production, in bottles Year 2 Second Third 94,000 154.000 Year 3 First 74,08 Fourth 184,000 Musk oil has become so popular as a perfume Ingredient that it has become necessary to carry large inventories as a precaution against stock-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 38,400 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 Caross Direct Materials Budget - Year 2 Quartet First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials 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
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