3 Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] 2 Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western points Siberia. The cost of the musk oil is $1.50 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 First eBook Budgeted production, in bottles 60, 000 90, 000 150, 000 100, 000 70, 000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Hint Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Print Mink Caress Direct Materials Budget - Year 2 References Quarter Year First Second Third Fourth Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production