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Four grams of musk oil are required for each bottle of Mink Caress, a very popular pertame made by a small company in westem Siberia.

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Four grams of musk oil are required for each bottle of Mink Caress, a very popular pertame made by a small company in westem Siberia. The cost of the musk oil is $2 10 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 108,000 First Second Third Fourth 138.000 Budgeted production, in botmes 98.000 128,000 188.000 Musk oil has become sorpopular as a perfume ingredient that 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 tollowing quarter's production needs. Some 78,400 grams of musk of will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for musk of, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.) Mink Caress Direct Materials ludget Year 2 Quarter Third Fourth Year First Second Required production in units of tnished goods Units of raw materials needed per unit of teished goods Units of raw materials needed to meet production Total unds of raw materials needed Units of raw materials to be purchased Unit cost of rae materials Cost of raw materials to purchased

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