Four 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 $1.90 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
	First	Second	Third	Fourth		First
Budgeted production, in bottles	96,000	126,000	186,000	136,000		106,000

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 76,800 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. (Round "Unit cost of raw materials" answers to 2 decimal places.) > Answer is complete but not entirely correct. Mink Caress Direct Materials Budget - Year 2 Quarter First 96,000 3 x Third 186,000 3 x Year 544,000 3 x Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed 288,000 75,600 558,000 81,600 X 1,632,000 21,200 X 1,653,200 363,600 639,600 X Less: Units of beginning raw materials inventory 111,600 X 76,800 1,576,400 Units of raw materials to be purchased Unit cost of raw materials 528,000 X $ 1.90 $1,003,200 1.90 Cost of raw materials to purchased $ $ 76,800 286,800 1.90 544,920 Second 126,000 3 x 378,000 111,600 X 867,600 X 75,600 X 792,000 X $ 1.90 $1,504,800 $ $ Fourth 136,000 3 x 408,000 21,200 X 429,200 X 81,600 X 347,600 X 1.90 660,440 $ $ 2,995,160