Question

Tell me what you want to do Add-ins Help View view AaBbCcDd AaBbCcDd AaBbC Aa BbCcD Aa B 1 No Spac... Heading 1 Title Heading 2 1 Normal Styles Paragraph 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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 3 Year 2 First Fourth First Second Third Budgeted production, in 60,000 90,000 150,000 100,000 70,000 bottles 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 36,000 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. (Round "Unit cost of raw materials" answers to 2 decimal places.) (Ctrl)

Answer 1

Solution:

G Н K 1 2 5 Mink caress 6 Direct materials Budget 7 Third 8 Particulars Second Fourth First Year Budgeted Production in Bottles Units of raw materials needed per unit Units of raw materials needed to meet production Add: ending inventory units of Raw Materials (20%) Total Units of raw materials needed Less: Beginning inventory units of Raw Materials Units of Raw Materials to be purchased Unit Cost of Raw Materials 90000 150000 100000 9 60000 400000 10 33 270000 1200000 180000 450000 300000 42000 342000 11 54000 90000 60000 12 42000 510000 1242000 36000 13 234000 360000 54000 60000 90000 14 36000 1206000 198000 420000 306000 282000 15 $1.50 $1.50 $1.50 $1.50 $1.50 16 17 $297,000 $459,000 $630,000 $423,000 $1,809,000 Cost of Raw materials to purchased 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Sheet183 (8) Sheet776 Sheet777 Sheet779 et775 O II