Exercise 8-3 Direct Materials Budget [LO8-4] Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberla. The cost of the musk oil is $210 per gram. Budgeted production of Mink Caress 15 given below by quarters for Year 2 and for the first quarter of Year 3 : Musk oi has become so popular as a perfume ingredlent that it has become necessary to carry large inventorles as a precaution against stock-outs. For this reason, the inventory of musk oll at the end of a quarter must be equal to 20% of the followng quarter's production needs. Some 78.400 grams of musk oll will be on hand to start the first quarter of Year 2