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 Exercise 8-3 (Algo) Direct Materials Budget (L08-4) 11

Accounting

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 Exercise 8-3 (Algo) Direct Materials Budget (L08-4) 11.11 points 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 $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and the first quarter of Year 3: Year 2 Year First Second Third First Budgeted production, in bottles 64.000 94,000 154,000 184.ee 74,000 Fourth eBook The inventory of muskoll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 38 400 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. Print Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third References Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to moet 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