inree grams of musk on are required for each bottle or MINK Caress, a very popular pertume made by a small company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles Year 2 Pirst Second Third Fourth 72,000 102,000 162,000 112,000 Year 3 First 82,000 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 43,200 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quprter and in total, for Year 2. Third 162,000 3 Mink Caross Direct Materials Budget - Year 2 Quarter First Second Required production in units of finished goods 72,000 102,000 Units of raw materials needed per unit of finished goods 3 3 Units of raw materials needed to meet production 216,000 306,000 Add: Desired units of ending raw materials inventory 61,200 97,200 Total units of raw materials needed Less: Units of beginning row materials inventory Units of raw materials to be purchased Unit cost of raw materials Chat of raw materiale in haar Fourth 112,000 3 336,000 Year 448,000 3 1,344,000 486,000 67,200