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Four 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 muskoll 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: Year 2 Year 3 First Second Third Fourth Pirst Budgeted production, in bottles 98,000 128,000 188,000 138,000 108,000 The inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 78,400 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. Year > Fourth Quarter 138,000 4 108,000 Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to moot production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Desired units of ending raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Answer is not complete. Mink Caress Direct Materials Budget - Year 2 First Second Third Quarter Quarter Quarter 98,000 128,000 188,000 4 4 4 392,000 512,000 752,000 102,400 150.400 110.400 494,000 3 662,400 862.400 * 78,400 102,400 150,400 416,000 560,000 712,000 $ 210S 2.10$ 2.10$ $ 873,600 $ 1,176,000 $ 1,495,200 $ > O 552,000 86,400 638,400 110,400 528,000 2.10 1,108,800 OOOO lo

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