Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Three 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 $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 38.400 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 . he inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 8,400 grams of musk oil will be on hand to start the first quarter of Year 2 lequired: 'repare a direct materials budget for musk oll, by quarter and in total, for Year 2