Two 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 $2.20 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) First Second Third Fourth First Budgeted production, in bottles 86,000 116,000 176,000 126,000 96.000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 34,400 grams of musk oil will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2. Answer is not complete Mink Caress Direct Materials Budget - Year 2 First Second Quarter Quarter 86.000 116,000 2 2 172.000 232.000 46.400 70.400 AN 13 an Fourth Quarter 120,000 2 Year 504.000 Third Quarter 176.000 2 352,000 50,400 an Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory This new materiale med 1,000,000 252.000 38.400 90 oints Year 504,000 Answer is not complete. Mink Caress Direct Materials Budget - Year 2 First Second Third Quarter Quarter Quarter B6,000 116.000 176.000 2 2 2 172.000 232,000 352.000 46,400 70,400 50.400 218,400 302.400 402.400 (34.400) (46,400) (70.400) 184,000 256,000 332.000 $ 220$ 2.203 2.20 $ $ 404 800 $ 563.200 $ 730,400 5 Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased 1,008,000 Fourth Quarter 126,000 2 252,000 38.400 290.400 (50,400) 240.000 2.20 528,000 1,012.000 0.00 $