Week 4 4 Siberla. The cost of the musk oil is $1.50 per gram. Budgeted productio

Question

Week 4 4 Siberla. 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 3 151 points Year 2 Budgeted production, in bottles Musk oil has so popular as a perfume ingredient that it has necessary to carry large inventories as a precaution against stock uts. For this reason, the in entoryor musk o 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 vill be on hand to start the first quarter of Year 2 Prepare a decimal places.) direct materials budget for musk oll, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 First Prev 4 of 111 Next > Type here to search

Explanation / Answer

Direct material budget Year 2

1st quarter 2nd quater 3rd quarter 4th quarter Year Production units 60000 90000 150000 100000 400000 Units of raw materials needed per unit of finished goods 3 3 3 3 3 Units of raw materials needed for meet production 180000 270000 450000 300000 1200000 Add: Desired ending inventory 54000 90000 60000 42000 42000 Total units of raw material 234000 360000 510000 342000 1242000 Less: Beginning inventory -36000 -54000 -90000 -60000 -36000 Units of raw materials to be purchased 198000 306000 420000 282000 1206000 Unit cost of raw material 1.50 1.50 1.50 1.50 1.50 Cost of raw materials to purchased 297000 459000 630000 423000 1809000

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