irect Materials Budget $[$LO$8-4]$

equired for each bottle of Mink Caress, a popular perfume tern Siberia. The cost of the musk oil is $$1\mathrm{.}60$ per gram. tion of Mink Caress is given below for Year $2$ and the first

$\backslash$table$[[,$Year $2,$Year $3],[7$ bottles,First,Second,Third,Fourth,First$]]$

$t$ the end of a quarter must equal $20\%$ of the following $.$ A total of $30,400$ grams of musk oil will be on hand to start

udget for musk oil, by quarter and in total, for Year $2.$

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter$],[,$First,Second,Third,Fourth$],[$inished goods,$15,200,,,]$

Two grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $$1\mathrm{.}60$ per gram. Budgeted quarterly production of Mink Caress is given below for Year $2$ and the first quarter of Year $3$:

$\backslash$table$[[,$Year $2,],[$Budgeted production, in bottles,$76,000,106,000,166,000]]$

The inventory of musk oil at the end of a quarter must equal $20\%$ of the following quarter's production needs. A total of $30,400$ 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 $2.$

$\backslash$table$[[$Mink Caress,,$],[$Direct Materials Budget $-$ Year $2,,],[,,],[$Required production in units of finished goods,First,Second$],[$Units of raw materials needed per unit of finished goods,$15,200,],[$Units of raw materials needed to meet production,$152,000,],[,2,310,400,000,],[$Total units of raw materials needed,,$],[,,],[$Units of raw materials to be purchased,,$],[$Unit cost of raw materials,,$],[$Cost of raw materials to purchased,,$]]$

BUDGET PRODUCTION IN BOTTLES: First $76,000$ Second $106,000$ Third $166,000$ Fourth $116,000$ Year $3$ First $86,000$