Exercise $8-3($Algo$)$ Direct Materials Budget $[$LO$8-4]$

Three grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $$2\mathrm{.}20$ per gram. Budgeted quarterly production of Mink Caress is given below for Year $2$ and the first quarter of Year $3$:

$\backslash$table$[[,$Year $2,$Year $3],[$Budgeted production, in bottles,First,Second,Third,Fourth,First,$],[,72,000,102,000,162,000,112,000,82,000,]]$

The inventory of musk oil at the end of a quarter must equal $20\%$ of the following quarter's production needs. A total of $43,200$ 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 $2.$

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter,Year$],[,$First,Second,Third,Fourth$],[,,,,,],[$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,,,,,$]]$