Question

im not sure what im doing wrong in these answers, if someone could help me please.

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 musko is $190 per gram. Budgeted production of Mink Caress is given below by er for Year 2 and for the first quarter of Year 3 Budgeted production, in bottles 95, 126, 186, 136,60 1 06, 1R 4.PO points awarded 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 76,800 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 Wank Caress Direct Materials Budget Year 2 130 000 44000 Requred production in units of finished goods Units of raw materia de perrt of finished goods Units of raw materiais needed to meet production Add Desired units ofending raw materials inventory Total units of raw material needed Less Units of beginning raw materials inventory Unit of materials to be purchased Unit cost of raw materia materials to purchased First Second Thed 00.000 120 000 100.000 444 34000 4000 44000 100.000 168.800 108.800 454.000 52.000 52.800 70.000 100.000 148.000 400.000 552.000 704.000 3 100 100 100 3775.2003 1,048.800S 1337 800 44000 27.000 8 4 800 4 41200 28.800 2.010.200 100.000 435.200 $20.000 2.184.000 100 1000 088 00034140000

Answer 1

	First	Second	Third	Fourth	Year
Required production in units of finished goods	96000	126000	186000	136000	544000
Units of raw materials needed per unit of finished goods	4	4	4	4	4
Units of raw materials needed to meet production	384000	504000	744000	544000	2176000
Add desired units of ending raw materials inventory	100800	148800	108800	84800	84800
Total units of raw materials needed	484800	652800	852800	628800	2260800
Less units of beginning raw materials inventory	76800	100800	148800	108800	76800
Units of raw materials to be purchased.	408000	552000	704000	520000	2184000
Unit cost of raw materials	1.90	1.90	1.90	1.90	1.90
Cost of raw materials to purchased	775200	1048800	1337600	988000	4149600

2

Sales	17900000
Divide by Average Operating Assets	36600000
Turnover	0.49