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Four grams 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 $1.60 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 90,000 Year 2 Second Third 120,000 180,000 Year 3 First 100,000 Fourth 130,000 Budgeted production, in bottles 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 72,000 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. X Answer is complete but not entirely correct. Return to question 3 Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. X Answer is complete but not entirely correct. -66 Mink Caress ints Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year 90,000 120,000 180,000 130,000 1,560,000 X 3 x 3 3 x 3 3 x 360,000 390,000 4,680,000 108,000 X 60,000 X 60,000 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 Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased 270,000 72,000 342,000 72,000 468,000 X 72,000 X 540,000 78,000 618,000 108,000 X 510,000 X 270,000 X 396,000 X 450,000 X 4,740,000 78,000 X 72,000 372,000 X 4,668,000 X 1.60 $ 1.60 595,200 $ 7,468,800 $ 1.60 $ 1.60 $ 1.60 $ $ 432,000 $ 633,600 $ 816,000 $