t.htm Exercise 8-3 Direct Materials Budget [LO8-4] in westem Siberla. 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 points 62,000 92,000 52,000 102,000 72,000 eBook Print gainst 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 37,200 grams of musk oil will be on hand to start the first quarter of Year 2. decimal places.) Direct Materials Budget- Year 2 MacBook Air