Business, 05.11.2019 03:31, arielpraczko1

Four 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 $1.80 per gram. budgeted production of mink caress 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 94,000 124,000 184,000 134,000 104,000 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 75,200 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.

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Four grams of musk oil are required for each bottle of mink caress, a very popular perfume made by a...