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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: Yoar 2 Year 3 First First Third Second Fourth Budgetad production, in battles 70,000 100.000 160.000 110.000 80,000 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 bqual 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 musk oil, by quarter and in total, for Yoar 2. (Round "Unit cost of raw materlals" answers to 2 decimal places.) Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Required production in unils of finished goods Units of raw materials needed per unit of finished gonds Unils ol ra malerials needed to meel produclion Tolal unils ol raw malerials needed Units ol ra malenals lobe purhasuu Unit coat of raw materials Cost of raw materials to purchased

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