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Four grams of musk oil are required for each bottle of Mink Caress, a very...

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Accounting

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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 c Siberia. The cost of the musk oi is $1.80 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 First SecondThirdFourth Year 3 Pirst 104,000 Budgeted production, in bottles 94,000 124,000 184,000 134,000 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 75,200 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. (Round "Unit cost of raw materials" answers to 2 decimal places.)

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