s Two grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in westernSiberia. The cost of the musk oll is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and forthe first quarter of Year 3:Budgeted production, in bottlesYear 2SecondFirstThird36,000 116,000 176,000Musk oll has become so popular as a perfume Ingredient that it has become necessary to carry large inventories as a precautionagainst stock-outs. For this reason, the Inventory of musk oll at the end of a quarter must be equal to 20% of the following quarter'sproduction needs. Some 34,400 grams of musk oll will be on hand to start the first quarter of Year 2.Required:Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2Units of raw materials needed per unit of finishedgoodsUnits of raw materials needed to meet productionTotal units of raw materials neededUnits of raw materials to be purchasedUnit cost of raw materialsCost of raw materials to purchasedFourth126,000Mink CaressDirect Materials Budget-Year 2FirstQuarterYear 3First96,000SecondThirdFourthYear

A direct mateerial budget shows the quantity and value of the material required for production for a…

first quarter of Year 3: Budgeted production, in bottles Budgeted production of Mink Caress is given bell Year 2 First Second Third Fourth 36,000 116,000 176,000 126,000 Year 3 First 96,000 ask oll has become so popular as a perfume Ingredient that it has become necessary to carry large ainst stock-outs. For this reason, the Inventory of musk oll at the end of a quarter must be equal to oduction needs. Some 34,400 grams of musk oll will be on hand to start the first quarter of Year 2 quired: apare a direct materials budget for musk oll, by quarter and in total, for Year 2