Quiz 1 (Chapter 8) Saved 3 Four ounces of bentonite clay are required for each container of product. The cost of the clay is $2.20 per ounce. Budgeted production is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Second Third Fourth 130,000 190,000 140,000 First 100,000 Year 3 First 110,000 Budgeted production, (# of containers) 15 points 8 00:41:29 The inventory of bentonite clay at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 80,000 ounces of clay will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for bentonite clay, by quarter and in total, for Year 2. Clay Solutions Inc. Direct Materials Budget - Year 2 Quarter First Fourth Year 100,000 560,000 Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Second 130,000 2 260.000 Third 190,000 2 380,000 140,000 21 280.000 200,000 1,120,000 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased