Remaining Time: 13 minutes, 59 seconds. Question Completion Status: QUESTION 3 This is the first month of production ever Sales are 40 units for this month and so units for next month Desired ending inventory is not rest month's sales. How much should be produced? 40 90 45 54 QUESTION 4 20% of sales are paid for with cash. Of credit sales, 50% are paid for in the month of sale and so are paid for in the month following the site. This month had $1,000 in sales. How much cash is collected this month for this month's sales? (Be careful to notice some sales are common credit $500 $600 $200 $700 Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in westem Siberia. The cost of the musk oil is $150 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year Second Third Tourth 90,000 150,000 100.000 First 60,000 Piret 70.000 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 36.000 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 Year 400,000 Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Required production in units of finished goods 60.000 90,000 150,000 Units of raw materials needed per unit of finished goods 3 Unts of raw materials needed to meet production 180,000 270,000 450.000 Less Desired units of onding raw materials inventory 54000 90,000 60,000 Total units of raw materials needed 234.000 360,000 510,000 Less Units of beginning raw materials inventory 35,000 54,000 30.000 Units of raw materials to be purchased 198,000 306.000 420,000 Un coat of raw materials $ 1.50 $ 1.500 5 1.50 Cost of raw materials to purchased $ 297,000 5 459.000 $ 630,000 Fourth 100,000 3 300.000 300.000 1.200,000 60.000 $ 1.50 $ 1.50