Exercise $8-3($Algo$)$ Direct Materials Budget $[$LO$8-4]$

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 $$1\mathrm{.}50$ 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 $74,000104,000164,000114,00084,000$

The inventory of musk oil at the end of a quarter must be equal to $20\%$ of the following quarter$$s production needs. Some $29,600$ 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 $2.$Exercise $8-3($Algo$)$ Direct Materials Budget $[$LO$8-4]$

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 $$1\mathrm{.}50$ per gram. Budgeted production of Mink Caress is given below by quarters for Year $2$ and for the first quarter of Year $3$:

$\backslash$table$[[,$Year $2,$Year $3],[$Budgeted production, in bottles,First,Second,Third,Fourth,First$],[,74,000,104,000,164,000,114,000,84,000]]$

The inventory of musk oil at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $29,600$ 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 $2.$

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter,Year$],[,$First,Second,Third,Fourth$],[$P$,?,,,,],[$Units of raw materials needed per unit of finished goods,?,,,,$],[$Units of raw materials needed to meet production,,,,,$],[$P$,?,,,,],[$Total units of raw materials needed,,,,,$],[?,?,,,,],[$Units of raw materials to be purchased,,,,,$],[$Unit cost of raw materials,?,,,,$],[$Cost of raw materials to purchased,,,,,$]]3$

Exercise $8-3($Algo$)$ Direct Materials Budget $[$LO$8-4]$

$1$

points $$

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 $$1\mathrm{.}50$ per gram. Budgeted production of Mink Caress is given below by quarters for Year $2$ and for the first quarter of Year $3$:

$\backslash$table$[[,$Year $2,$Year $3],[,$First,Second,Third,Fourth,First$],[$Budgeted production, in bottles,$74,000,104,000,164,000,114,000,84,000]]$

The inventory of musk oil at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $29,600$ 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 $2.$

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter,Year$],[,$First,Second,Third,Fourth$],[$Required production in units of finished goods,$74,000,104,000,164,000,114,000,],[$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,,,,,$]]$