three grams of musk oil are required for each bottle of Mink Caress.

three 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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for he first quarter of Year 3: Year 2 Year 3 Budgeted production, in bottles First Second Third Fourth First 60, 000 90,000 150,060 100,000 70 , 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 36,000 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 Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods nits of raw materials needed to meet production total units of raw materials needed Pre.v. 3 of 6 Next > A O O a ich