1
| Mink Caress | |||||
| Direct Materials Budget – Year 2 | |||||
| First | Second | Third | Fourth | Year | |
| Required produc±on in units of Fnished goods |
80000 | 110000 | 170000 | 120000 | 480000 |
| Units of raw materials needed per unit of fnished goods |
3.6 | 3.6 | 3.6 | 3.6 | 3.6 |
| Units of raw materials needed tomeet produc±on | 288000 | 396000 | 612000 | 432000 | 1728000 |
| Less Endning inventory-batteries | 79200 | 122400 | 86400 | 64800 | 352800 |
| Total units of raw materials needed | 208800 | 273600 | 525600 | 367200 | 1375200 |
| Less: units of beginning raw materials inventory | 32000 | 79200 | 122400 | 86400 | 320000 |
| Units of raw materials to be purchased 1 | 176800 | 194400 | 403200 | 280800 | 1055200 |
| Unit cost of raw materials | 1.8 | 1.8 | 1.8 | 1.8 | 1.8 |
| Cost of raw materials to be purchased | 318240 | 349920 | 725760 | 505440 | 1899360 |
