View previous attempt Check 3 Three grams of musk of 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 $170 per gram Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3 25 points Year 2 Second Third Fourth 94,000 154,000 104,000 Year First 74,000 First 64,000 8 03:02 Budgeted production, in bottles Hint 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 od at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 38,400 grams of musk oil will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2 Print Reference 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 38,400 grams of musk oil will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2 Fourth Year Mink Caress Direct Materials Budget Year 2 Quarter First Second Third 64,000 94,000 154,000 Units of raw materials needed per unit of finished goods 3.3 3 Units of raw materials needed to meet production 192,000 282,000 462,000 56.400 92.4001 62.400 Total units of raw materials needed 192 000 374,000 5244 000 38.400 56 400 Units of raw materials to be purchased 210.000 318.0001 Unit cost of raw materials $ 1.7015 1.70 Cost of raw materials to purchased $ 357000 5 540,600