Three grams of musk oil are required for each bottle of Mink Caress, a very popular...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Three 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 given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First 72,000 Second Third 102,000 162,000 Fourth 112,000 First 82,000 Budgeted production, in bottles 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% of the following quarter's production needs. Some 43,200 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.) 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.) Mink Caress Direct Materials Budget - Year 2 Quarter First Second Fourth 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 Third Three 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 given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First 72,000 Second Third 102,000 162,000 Fourth 112,000 First 82,000 Budgeted production, in bottles 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% of the following quarter's production needs. Some 43,200 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.) 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.) Mink Caress Direct Materials Budget - Year 2 Quarter First Second Fourth 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 Third
Expert Answer:
Answer rating: 100% (QA)
Mink Caress Direct Materials Budget Year 2 First Second Third Fourth Year Required productio... View the full answer
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
Students also viewed these accounting questions
-
Three 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 $1.50 per gram. Budgeted production...
-
Three 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...
-
Three 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 150 roubles per kilogram. (Siberia...
-
Pipestone Ltd. (Pipestone) uses an aging schedule to estimate the amount of receivables that won't be collected. Pipestone allows its customers up to 60 days to pay amounts owed. Any receivable...
-
Waxer Corporation has an investment in corporate bonds classified as available-for-sale at December 31, 2014. These bonds have a par value of $500,000, an amortized cost of $500,000, and a fair value...
-
Hard Rock Concrete Supply makes concrete at its plant in Centerville, Virginia, and delivers it to construction sites throughout the metropolitan Washington, DC, area. The following network shows the...
-
Refer to the data given for the Sky Company in Problem P12-4A. Required a. Calculate the change in cash that occurred in 2019. b. Prepare a statement of cash flows using the direct method. Use one...
-
In Berk and DeMarzo the authors interview David Holland, who at the time was a Senior Vice President and Treasurer of Cisco, in that interview he states that Cisco uses robust NPV analysis, which...
-
Please discuss how supply and demand drive the transportation industry? In your opinion, how does the transportation industry affect the environment?
-
The restaurant owner Lobster Jack wants to find out what the peak demand periods are, during the hours of operation, in order to be better prepared to serve his customers. He thinks that, on average,...
-
Write the heat equation for the one - dimensional ( radial ) transient regime in the sphere containing heat production, showing step by step how it is obtained. ( k is a constant. )
-
On January 1, 2025, Wildhorse Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Wildhorse Corporation. On December 31, 2024, Wildhorse's...
-
How do biogeographic barriers, such as mountain ranges, rivers, and oceans, influence patterns of species distribution and genetic divergence, and what insights can phylogeographic analyses offer...
-
Does the exponential expression represent growth or decay? 0.92(1.006)' The given exponential expression represents
-
2) During the summer, the temperature outside increases from 90 degrees to 100 degrees (Fahrenheit, not Celsius. For some reasons people in the U.S. like to use outdated temperature scale...) and it...
-
How does the communication between the mitochondria and other cellular organelles (such as the nucleus and endoplasmic reticulum) influence overall cellular energy homeostasis and metabolic...
-
Unit 6: Agile Business Validation and Retrospectives Subject - Agile Business Analysis BUAN 0160 Q- What are the challenges in performing a user acceptance test, and how can Agile principles avert...
-
Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2024. The company presently uses the LIFO method of pricing its...
-
Samanca Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the plant is determined by the capacity of...
-
Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis of sales dollars. During...
-
Kelly Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable cost per unit: Direct materials...
-
The comparative financial statements for CompuCircuit Corporation are in the Working Papers. The financial statements have been completed up to the financial analysis section. The following...
-
The comparative financial statements for Advanced Auto Technology, Inc., are in the Working Papers. The financial statements have been completed up to the financial analysis section. The following...
-
Corporate annual reports include a letter from the chief executive officer (CEO). The letter highlights achievements and positive results from the past year. If necessary, it delivers news of...
Study smarter with the SolutionInn App