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 $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 Third Budgeted production, in bottles 84,000 114,000 174,000 124,000 The Inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 33,600 grams of musk oil will be on hand to start the first quarter of Year 2. First Second Fourth First 94,000 Rennrods Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Mink Caress Direct Materials Budget - Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Your Units of raw materials needed per unit of finished goods Units of raw materials nooded to meet production OY Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased