Exercise 8-3 Direct Materials Budget [LO8-4] Three grams of musk oll 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 oli is $1.60 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 oll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 37,200grams 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