Checkm Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 54,000 75,000 94,000 82,000 The company is now in the process of preparing a production budget for the second quarter. Post experience has shown that end-of- month inventory levels must equal 20% of the following month's unit sales. The inventory at the end of March was 10,800 units. Required: Prepare a production budget by month and in total, for the second quarter. Down Under Products, Lid., Production Budget April May June Quarter Budgeted units sales Total needs 0 0 Required production in units 0 0 0 0 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 $1.90 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 First Second Third Fourth 82,000 112,808 172,888 122,000 Year 3 First 92,080 Budgeted production, in bottles The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 32,800 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. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased