Four grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of the fragrance is $$1\mathrm{.}50$ per gram. Budgeted production of Floral 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 $88,000118,000178,000128,00098,000$

The inventory of fragrance at the end of a quarter must be equal to $20\%$ of the following quarter$$s production needs. Some $70,400$ grams of fragrance will be on hand to start the first quarter of Year $2.$

Required:

Prepare a direct materials budget for fragrance, by quarter and in total, for Year $2.$

Answer rating: 100% (QA)

Answer To solve this problem we need to calculate the amount of fragrance needed for each quarter th... View the full answer