Business, 05.11.2019 01:31 ddmorse2015owug6f

Hree 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 $1.90 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 68,000 98,000 158,000 108,000 78,000 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 40,800 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. (round "unit cost of raw materials" answers to 2 decimal places.)

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