Exercise 8-3 (Static) Direct Materials Budget [LO8-4] Three grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: First 60,000 Second 90,000 Year 2 Third 150,000 Fourth 100,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Year 3 First 70,000 Budgeted production, in bottles The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 36,000 grams of musk oil will be on hand to start the first quarter of Year 2.

Exercise 8-3 (Static) Direct Materials Budget [LO8-4] Three grams of musk oll are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 36,000 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