2. Prepare the companys proucon budget io the upog EXERCISE 9-3 Direct Materials Purchases Budget [LO2] Exercise 9-3: Help Me Solve It Tutorial Click here to view a transcript of this video Micro Products Inc. has developed a very powerful el three small chips that cost $3 each and are purchased from an overseas supplier. Micro Pr prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below: calculator. Each calculator requires oducts has Year 3 h First Year 2 aato00 9000 0000 10 800 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end f a quarter must be equal to 20% of the following quarter's production needs. A total of 36,000 chips will be on hand to start the first quarter of year 2. Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. EXERCISE 9-4 Direct Labour Budget [LO2] The manu facturing division manager of Davison Enterprises has submitted the following production forecast (n units) for each quarter of the next fiscal year. The plant produces seats for motorcycles