Two grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of

the fragrance is $$1\mathrm{.}90$ per gram. Budgeted production of Floral is given below by quarters for Year $2$ and for the first quarter of Year $3$ :

The inventory of fragrance at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $32,800$

grams of fragrance will be on hand to start the first quarter of Year $2.$

Required:

Prepare a direct materials budget for fragrance, by quarter and in total, for Year $2.$Two grams of fragrance are required for each bottle of Floral, a very popular perfume made by a small company in Lowell. The cost of the fragrance is $$1\mathrm{.}90$ per gram. Budgeted production of Floral is given below by quarters for Year $2$ and for the first quarter of Year $3$:

Year $2$ Year $3$

First Second Third Fourth First

Budgeted production, in bottles $82,000112,000172,000122,00092,000$

The inventory of fragrance at the end of a quarter must be equal to $20\%$ of the following quarter$$s production needs. Some $32,800$ grams of fragrance will be on hand to start the first quarter of Year $2.$

Required:

Prepare a direct materials budget for fragrance, by quarter and in total, for Year $2.$