Two grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 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 oil, by quarter and in total, for Year 2
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