Maker - Alchemy Skill FAQ and Walkthrough

For making the Monster Crystals, does it matter what level of the skill you have in respect to the level of the monster drop? For example, is it possible to turn lvl 111-120 drops into Monster Crystals with the lvl 1 skill?

As I understand it:

Level 1 can only make the three low grade crystals
Level 2 adds the ability to make the three mid grade crystals
Level 3 adds the ability to make the three high grade crystals

Sometimes a crystal will jump a grade though, so even level 1 can occassionally spew out a level 2 crystal if you were going for a high level 1 and it upgrades to a low level 2.