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Four ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, Callfornia. The zinc oxide cost is

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Four ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, Callfornia. The zinc oxide cost is $1.90 per ounce Budgeted production of Hawaiian Gold is given below by quarters for Year 2 and for the first quarter of Year 3 Year 3 Budgeted production, in bottles First 96, eee Year 2 Second Third Fourth 126,808 186,000 136,000 106, eee There is a high demand for zinc oxide which requires the company to have large inventories of the ingredient in case of a shortage. For this reason, the zinc oxide inventory at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 76,800 ounces of zinc oxide will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2

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