Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] 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 $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 Pirat 86,000 Second 116,000 Third 176,000 Fourth 126,000 Year 3 First 96,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 34,400 grams of musk oll 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. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Mink Caress Direct Materials Budget-Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Year Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased