HW Chapter 8 i Saved Help Save & Exit Submit Check my work 3 Four grams of musk oil 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 $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: 16.66 points Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 88, 000 118, 000 178, 000 128, 006 98, 000 eBook The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 70,400 Hint grams of musk oil will be on hand to start the first quarter of Year 2. Required: Print Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. References Mink Caress Direct Materials Budget - Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Year Required production in units of finished goods 68,000 118,000 178,000 128,000 512,000 Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production 352,000 472,000 712,000 512,000 2,048,000 Add: Desired units of ending raw materials inventory 94,400 142,400 102,400 78,400 417,600 Total units of raw materials needed 446,400 614,400 814,400 690,400 809,600 Less: Units of beginning raw materials inventory 70,400 70,800 106,800 76.800 324,800 Units of raw materials to be purchased 264,400 390,000 504,000 366,000 282,400 Unit cost of raw materials $ .50 $ 1.50 S $ 1.50 $ 1.50 Cost of raw materials to purchased $ 396,600 $ 585,000 $ 756,000 $ 549,000 $ 423,600 Mc Graw Hill