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  3. two grams of musk oil are required for each bottle

Two grams of musk oil are required for each bottle of Mink Caress, a very...

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Accounting

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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: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 84,000 114,000 174,000 124,000 94,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's 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 oll, by quarter and in total, for Year 2. Mink Caress Direct Materials Budget Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased

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