Exercise $8-3($Algo$)$ Direct Materials Budget $[$LO$8-4]$

Three grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $$1\mathrm{.}80$ per gram. Budgeted production of Mink Caress is given below by quarters for Year $2$ and for the first quarter of Year $3$:

$\backslash$table$[[,,$Year $2,$Year $3],[$Budgeted production, in bottles,First,Second,Third,Fourth,First$],[,66,000,96,000,156,000,106,000,76,000]]$

The inventory of musk oll at the end of a quarter must be equal to $20\%$ of the following quarter's production needs. Some $39,600$ grams of musk oll will be on hand to start the first quarter of Year $2.$

Required:

Prepare a direct materlals budget for musk oll, by quarter and In total, for Year $2.$

$\backslash$table$[[$Mink Caress$],[$Direct Materials Budget $-$ Year $2],[,$Quarter,Year$],[,$First,Second,Third,Fourth$],[,,,,,],[$Units of raw materials needed per unit of finished goods$],[$Units of raw materials needed to meet production$],[,,,,,],[$Total units of raw materials needed$],[,,,,,],[$Units of raw materials to be purchased$],[$Unit cost of raw materials$],[$Cost of raw materials to purchased,,,,,$]]$