Siberia The cost of the musk oilis 180 per gram 66000 96000

Siberia. The cost of the musk oilis $1.80 per gram. 66,000 96,000 156,000 106,000 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 39,600 grams of musk oil will be on hand to start the first quarter of Year 2 decimal places.) to be

Solution

Mink Caress

Direct Materials Budget - Year 2

Quarter

Year

First

Second

Third

Fourth

Bdugeted production (bottles)

66000

96000

156000

106000

424000

Units of raw material needed per unit of finished goods

3

3

3

3

3

Units of raw material needed to meet production

198000

288000

468000

318000

1272000

Add: Ending inventory of raw materiasl

57600

93600

63600

45600

45600

Total units of raw material needed

255600

381600

531600

363600

1317600

Less: Beginning inventory of raw material

39600

57600

93600

63600

39600

Unit s of raw material to be purchased

216000

324000

438000

300000

1278000

Unit cost of raw materials

$ 1.80

$ 1.80

$ 1.80

$ 1.80

$ 1.80

Cost of rae materials to be purchased

$ 388,800.00

$ 583,200.00

$ 788,400.00

$ 540,000.00

$ 2,300,400.00

Mink Caress
Direct Materials Budget - Year 2
	Quarter	Year
	First	Second	Third	Fourth
Bdugeted production (bottles)	66000	96000	156000	106000	424000
Units of raw material needed per unit of finished goods	3	3	3	3	3
Units of raw material needed to meet production	198000	288000	468000	318000	1272000
Add: Ending inventory of raw materiasl	57600	93600	63600	45600	45600
Total units of raw material needed	255600	381600	531600	363600	1317600
Less: Beginning inventory of raw material	39600	57600	93600	63600	39600
Unit s of raw material to be purchased	216000	324000	438000	300000	1278000
Unit cost of raw materials	$ 1.80	$ 1.80	$ 1.80	$ 1.80	$ 1.80
Cost of rae materials to be purchased	$ 388,800.00	$ 583,200.00	$ 788,400.00	$ 540,000.00	$ 2,300,400.00