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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.

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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 $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 Second Third First Budgeted production, in bottles 70,000 100.000 160,000 110,000 80,000 First Fourth Musk oll 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 42,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for muskoll, by quarter and in total, for Year 2 Year Meurth 110.000 70.000 Mink Carus Direct Material Budget - Yene 2 Quarter Fiat Second Required production in unit of finished goods 100.000 Units of raw materiais needed per unit of finished goods Units of ww materials needed to meet production 210,000 300,000 Add: Desired units of ending raw materials inventory Total unit of materials nooded Los Unis of training ww materialinventory Urts of raw materials to be purchased Un ou oww menu Gout of raw material phased Third 160,000 3 480,000 330.000 NO 000

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