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

Four 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{.}50$ per gram. Budgeted production of Mink Caress is given below by quarters for Year $2$ and for the first quarter of Year $3$:

Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock$-$outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $70,400$ 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 $2.$

Answer is not complete.

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter,Yeal$],[,$First,Second,Third,Fourth$],[$Required production in units of finished goods,$88,000,118,000,178,000,128,000,],[$Units of raw materials needed per unit of finished goods$],[$Units of raw materials needed to meet production$],[$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,,,,,$]]$