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Two grams of musk oll are required for each bottle of Mink Caress

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Two grams of musk oll are required for each bottle of Mink Caress. a very popular perfume made by a smail company In western
Siberia. The cost of the musk oll Is $2.10 per gram. Budgeted production of Mink Caress ts given below by quarters for Year 2 and for
the first quarter of Year 3:
Year 2 Year 3
First Second Third fourth First
Budgeted production, in bottles 84,9000 114,000 174,e¢08 124,008 94,880
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Musk oil has become so popular as a perfume Ingredient that tt has become necessary to carry large Inventories as a precaution
agalnst 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's
production needs. Some 33,600 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 2. (Round "Unit cost of raw materials” answers to 2
decimal places.)
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