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 $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
Budget Production, in bottles
Year 2:
First 72,000
Second 102,000
Third 162,000
Fourth: 112,000
Year 3:
First 82,000
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 43,200 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.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%.
Answers (1)
What experience would least demonstrate to an employer that you have the skills to be an assistant to a newspaper reporter?
Answers (1)
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Jonna is considering using a refund anticipation loan to have money for a deposit on a caribbean vacation what are two alternatives she should consider before using this type of credit laura
Answers (1)
Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units of organic grain or 15 units of incense per year.
Answers (1)
New Questions in Business
True or false: if the extra output produced from an additional unit of capital falls as the stock of capital rises, the country is possibly overinvesting in capital.
Answers (1)
Janet has identified four features of a college to which she is planning to apply for admission. Identify the pros and cons of Janet's choice of college.
Answers (1)
Which is riskier, but has the potential for a higher rate of return? saving or investing
Answers (2)
You are comparing two annuities. Annuity A pays $100 at the end of each month for 10 years. Annuity B pays $100 at the beginning of each month for 10 years. The rate of return on both annuities is 8 percent.
Answers (1)
What will you call an employee who prioritize her goals rather than the team goal?
Answers (1)