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  3. two grams of musk oil are required for each bottle

Two grams of musk oil are required for each bottle of Mink Caress, a popular...

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Accounting

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 $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3:
Year 2 Year 3
First Second Third Fourth First
Budgeted production, in bottles 84,000114,000174,000124,00094,000
The inventory of musk oil at the end of a quarter must equal 20% of the following quarters production needs. A total of 33,600 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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