Exercise $8-3($Algo$)$ Direct Materials Budget $[$L$08-4]$

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\mathrm{.}70$ per gram. Budgeted production of Mink Caress is given below by quarters for Year $2$ and for the first quarter of Year $3$:

$\backslash$table$[[,$Year $2,$Year $3],[$Budgeted production, in bottles,$\backslash$table$[[$Second$],[108,000]],\backslash$table$[[$Third$],[168,000]],\backslash$table$[[$Fourth$],[118,000]],\backslash$table$[[$First$],[88,000]]]]$

The inventory of musk oil at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $31,200$ 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$[[$Direct Materials Budget $-$ Year $2,],[,$First Quarter,Second Quarter,Third Quarter,Fourth Quarter,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,,,,,$]]$