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MULTIDIMEN C ft ezto.mheducation.com/hm.tpx Top Ten Scientific ter 8 3 piece set

ID: 2653926 • Letter: M

Question

MULTIDIMEN C ft ezto.mheducation.com/hm.tpx Top Ten Scientific ter 8 3 piece set, Ivory jad. Question 2 (of 8) 3.12 points Four 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 $2 20 per gram. Budgeted production of Mink Caress is glven below by quarters for Year 2 and for the first quarter of Year 3 pertume made by a First Second Third Fourth 100.000 130,000 190,000 140,000 Budgeted production, in bottles 110,000 k oil has become so popular as a perfume ingredient that t has become necessary to carry large stock-outs. For this reason, the inventory of musk oil at the end of a t Some 80.000 grams of musk oil Musk inventories as a precaution against quarter must be equal to 20% at the tonowing quarter's production needs will be on hand to start the first quarter of Year 2 Required Prepare a direct materials budget for musk raw materials" answers to 2 decimal places.) e a direct materias budget for musk oil by quarter and in total, for Year 2 (Round "Unit cost of Mink Caress Direct Materials Budget-Year 2 Quarter First Second Third Fo

Explanation / Answer

Note

Desired Unit of ending raw material inventory = Next month's Production raw material Need*20%

Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year    Budgeted production in units of Finished Goods               100,000                 130,000            190,000                        140,000                560,000 Unit of Raw Material needed per unit of finished Goods                            4                              4                         4                                     4                             4 Unit of Raw Material needed to meet Production               400,000                 520,000            760,000                        560,000            2,240,000 Add : Desired Unit of ending raw material inventory               104,000                 152,000            112,000                          88,000                  88,000 Total Unit of raw material needed               504,000                 672,000            872,000                        648,000            2,328,000 Less:Unit of Beginning Raw material inventory                 80,000                 104,000            152,000                        112,000                  80,000 Unit of Raw Material to be purchased               424,000                 568,000            720,000                        536,000            2,248,000    Unit cost of raw material                      2.20                        2.20                   2.20                               2.20                       2.20 Cost of Raw Material to be purchased               932,800              1,249,600        1,584,000                    1,179,200            4,945,600
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