Check my work 3 Two grams of musk oil are required for each bottle of Mink Cares
ID: 2516537 • Letter: C
Question
Check my work 3 Two 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 $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: 10 points Year 2 First Second Third Fourth 84,000 114,000 174,000 124,000 Year 3 First 94,000 Budgeted production, in bottles eBook Hint Print References 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% ofthe fo owing quaters production needs. Some 33,600 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.)Explanation / Answer
First Second Third Fourth Year Required production in units of finishedgoods 84000 114000 174000 124000 496000 Units of raw materials needed per unit of finished goods 2 2 2 2 2 Units of raw materials needed to meet production 168000 228000 348000 248000 992000 Add desired units of ending raw materials inventory 45600 69600 49600 37600 37600 Total units of raw materials needed 213600 297600 397600 285600 1029600 Less units of beginning raw materials inventory 33600 45600 69600 49600 33600 Units of raw materials to be purchased. 180000 252000 328000 236000 996000 Unit cost of raw materials 2.1 2.1 2.1 2.1 2.1 Cost of raw materials to purchased 378000 529200 688800 495600 2091600