10.300 Preston Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pay $1 for each computer chip To help to guard against Mackouts of the computer chip Preston Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: (Click the icon to view the production schedule) Requirement Prepare a direct material budget for the first quarter that shows both the number of computer chips needed and the door amount of the purchases in the budget January February March Quarter Units to be produced 5,000 4.900 4400 14.700 Data Table - X Multiply by Quantity of direct materials needed per unit 2 2 2 2 Quantity needed for production 9.800 8.800 29.400 Plus Desired ending inventory of direct materials 2450 2.200 2250 Stuffed animals to be produced Total quantity needed 13.250 12.000 316 January 5.400 Less Beginning inventory of direct materials 4.900 Quantity to purchase March 4400 Multiply by Cost per April 4500 Total cost of red material purchases Print Done Enter any number in the edit helds and then click Check Answer 2250 February