SCHEDULE 3 C D E F 3 Hampton Freeze, Inc. Direct Materials Budget For the Year Ended December 31, 2017 Assumed Quarter 2 3 Year 9 Required production in cases (Schedule 2) 14,000 32,000 36,000 19,000 101,000 10 Units of raw materials needed per case 15 15 15 15 15 11 Units of raw materials needed to meet production 210,000 480.000 540,000 285,000 1,515,000 12 Add desired units of ending raw materials inventory' 48,000 10 54,000 10%28,500 1 22.500 22.500 13 Total units of raw materials needed 258,000 534,000 568,500 307 500 1,537,500 14 Less units of beginning raw materials inventory 21.000 48.000 *54.000 28.500 21.0004 15 Units of raw materials to be purchased 237 000 486.000 514.500 279,000 1,516,500 16 Cost of raw materials per pound S 0.20 S 0.20 S 0.20 $ 0.20 S 0.20 17 Cost of raw materials to be purchased $47.400 $97.200 $102.900 $55,800 $ 303,300 18 19 509 50% 20 Schedule of Expected Cash Disbursements for Purchases of Materials 21 22 Beginning accounts payable $25,800 $ 25,800 23 First-quarter purchases 23,700 $23.700 47,400 24 Second-quarter purchases* 48,600 $ 48,600 97,200 25 Third-quarter purchases 51,450 $ 51,450 102,900 26 Fourth-quarter purchases 27.900 27.900 27 Total cash disbursements for materials $49.500 $72.300 $100,050 $79.350 $ 301.200 an 14 4 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Ten percent of the next quarter's production needs. For example, the second-quarter production needs are 480,000 pounds. Therefore, the desired ending inventory for the first quarter would be 10% x 480,000 pounds = 48,000 pounds. The desired ending inventory for quarter 4 (22,500 pounds) assumes the first quarter production needs in 2018 are 225,000 pounds (= 225,000 pounds x 10% = 22,500 pounds). Cash payments for last year's fourth-quarter purchases. See the beginning-of-year balance sheet in Exhibit 8-3. $47,400 x 50%; $47,400 x 50%. *$97,200 x 50%; $97,200 x 50%. $$102,900 x 50%; $102,900 x 50%. $55,800 x 50%. Unpaid fourth-quarter purchases ($27,900) appear as accounts payable on the company's end-of-year budgeted balance sheet (see Schedule 10).Three grants of musk oil are required for each bottle of Mink Caress. a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the rst quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production. in bottles 60.000 90.000 150.000 l00.000 70.000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36.000 grams of musk oil will be on hand to start the rst quarter onear 2. Required: Using Schedule 3 as your guide. prepare a direct materials budget for musk oil. by quarter and in total. for Year 2