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Three grams of musk oil are required for each bottle of Mink Caress, a popular...

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Accounting

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Three grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a small company in western Siberia. (Siberia is located in Russia, whose currency is the ruble.) The cost of the musk oil is 150 rubles per gram. Budgeted production figures of Mink Caress follow by quarters for year 2 and for the first quarter of year 3: Year 3 Year 2 Quarter Quarter 2 4 Budgeted production, in bottles 60, 000 90, 000 150, 000 100,000 79,060 Musk oil has become so popular as a perfume base that it has become necessary to carry large inventories as a precaution against stock depletion. 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 materials purchases budget for musk oil, by quarter and in total, for year 2. At the bottom of your budget, show the amount of purchases in rubles for each quarter and for the year in total. (Input your cost of raw materials in thousands of rubles.) Materials Purchases Budget Year 2 2 3 4 Year 3 Total needs (grams)

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