First 62,000 Three 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 oll 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: Year 2 Year 3 Second Third Fourth First Budgeted production, in bottle 92,000 152,000 102,000 72,000 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 oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 37.200 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oll. by quarter and in total, for Year 2. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Required production in units of finished goods 62,000 92,000 Units of raw materials needed per unit of finished goods 3 3 Units of raw materials needed to meet production 186,000 276,000 Add: Desired units of onding raw materials inventory 55,200 91,200 Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Third 152.000 3 456,000 61,200 Fourth 102,000 3 Year 408,000 3 1,224,000 306,000 47.440