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 the first quarter of Year 3: Year 2 Second Third 98,89 150,890 First 60, 980 Budgeted production, in bottles Year 3 First 70,000 Fourth 189,999 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. Answer is complete but not entirely correct. Third 150.000 Fourth 100.000 Year 400.000 Mink Caress Direct Materials Budget - Year 2 Quarter First Second Required production in units of finished goods 60,000 90.000 Units of raw materials needed per unit of finished goods 3 Units of raw materials needed to meet production 180.000 270.000 Add: Desired units of ending raw materials inventory 54.000 90,000 Total units of raw materials needed 234,000 360,000 Less: Units of beginning raw materials inventory 36,000 54.000 Units of raw materials to be purchased 198,000 306.000 Unit cost of raw materials 1.50 $ 1.50 Cost of raw materials to purchased $ 297,000 $ 450,000 $ 450,000 60.000 510,000 90.000 420.000 1.50 630,000 300.000 42,000 342,000 60,000 282,000 1.50 423,000 1.200.000 248,000 $ 1,448,000 240.000 1,206,000 1.50 $ 1,809,000 S