Prepare a direct materials budget for musk oil

Assignment Help Managerial Accounting
Reference no: EM131137791

Two 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 $2.10 per gram. Budget 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

Budget production, in bottles

84,000

114,000

174,000

124,000

94,000

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 33,600 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.

Reference no: EM131137791

Questions Cloud

As a jesuit and mercy institution, the college of business : As a Jesuit and Mercy institution, the College of Business Administration at the University of Detroit Mercy strives to uphold the highest ethical standards. We expect students, no less than faculty, staff, and administrators, to behave in a professi..
Null hypothesis that an antipollution device for cars : (a) Explain under what conditions we would commit a type I error and under what conditions we would commit a type II error.
Determine the hydraulic conductivity of the sand : Determine the hydraulic conductivity of the sand. Estimate the effective grain size using Hazen's equation.
Explain the appropriate type of market structure : Determine the appropriate type of market structure for the situation in question. Cite at least four defining characteristics that have helped you reach this decision regarding the appropriateness of the chosen structure.
Prepare a direct materials budget for musk oil : Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. Required: Prepare a direct materials budget for musk oil, by quarter and in total for Year 2
Determine the subsidence of the clay surface : After 10 years of pumping, the porosity is reduced to 30%. Determine the subsidence of the clay surface.
Calculate the radius of influence : A well of 0.1 m radius is part of a well point network to keep an excavation dry (Figure P6.13). The groundwater at the far edge of the excavation must be 0.5 m below the base.
Assume the company does use reversing entries : Assume the company does use reversing entries. Prepare the December 31 adjusting entry, the January 1 reversing entry, and the entry on Monday, January 6, when LaBamba pays the payroll.
What is expression for price : What is profit here? What is expression for Price, Pi?- What factors determine the price that is optimally set by the firm?

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  What is the accounting cost per unit of backpacks

Suppose that the company decided to assign the accounting costs directly to the product lines using the number of transactions as the activity driver. What is the accounting cost per unit of backpacks?

  Current production costs per unit include direct materials

Lakeside, Inc., produces a product that currently sells for $36 per unit.

  Determine the amount of cost in the raw materials

AC 505 Case Study I,  Determine the amount of cost in the Raw Materials, Work in Process, and Finished Goods Inventory as of the date of the storm. ( Hint: You may wish to reconstruct the various schedules and statements that would have been affecte..

  Provide examples of how cash is used or provided depending

Provide examples of how cash is used or provided depending on whether it is categorized as an asset or liability.

  Prepare a contribution format income statement

Prepare a contribution format income statement and compute the degree of operating leverage.c. If you were a member of top management, would you have been in favor of constructingthe new plant?

  Portraits unlimited company budgeting project

Prepare Portraits Unlimited Company master budget for each quarter of 2014 and in total for the year by completing the following schedules and statements Sales budget

  How well does great oaks furniture appear

How well does Great Oaks Furniture appear to manage its accounts receivable and inventory? What suggestions do you have for the company?

  What was the cost of goods manufactured for the month

Last month a manufacturing company had the following operating results. What was the cost of goods manufactured for the month?

  What would be the amounts related to the lease that midsouth

What would be the amount(s) related to the bonds that Digital would report in its statement of cash flows for the year ended December 31, 2011, if Digital uses the direct method? The indirect method?

  Create general ledger accounts for each account

Create general ledger accounts for each account

  Overhead is applied on the basis of direct labor costs.

Accounting records for NIC Enterprises (NICE) for September show the following (each entry is the total of the actual entries for the account for the month):

  Prepare operating income statements for chenango

Prepare operating income statements for Chenango Can Company for its first three years of operations using: Absorption costing Variable costing

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd