Four ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, California. 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:

3 Four ounces of zinc oxide are required for each bottle of Hawaiian Gold, a suntan lotion made in Orange, California. 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: 16.66 points First 96,000 Year 2 Second Fourth 126,000 186,000 136,000 Third Year 3 First 106,000 Budgeted production, in bottles eBook 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 Hint Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2. Print Hawaiian Gold Direct Materials Budget - Year 2 Quarter Second References First Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased