Check my we Exercise 8-3 (Algo) Direct Materials Budget (LO8-4) 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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles First 74, eee Year 2 Second Third Fourth 104,000 164,000 114,000 Year 3 First 84, eee The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 29,600 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2 Che MNK Caress Direct Materials Budget - Year 2 Quarter First Second 74,000 104,000 Units of raw materials needed per unit of finished goods 2 Units of raw materials needed to meet production 148,000 208,000 Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Third 164,000 2 Fourth 114,000 2 228,000 Year 456,000 2 912,000 328,000