Beckett Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. Beckett Industries pays $1 for each computer chip. To help guard against stockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 30% 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 materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. Prepare the direct materials budget by first calculating the total quantity needed, and then complete the budget. (Round all answers to the nearest number. Use parentheses or a minus sign for negative beginning inventory balances.) Beckett Industries 1 Production Schedule March Quarter 4,900 14,500 3 Direct Materials Budget For the Months of January through March January February Units to be produced 5,000 4,600 Quantity of direct materials needed per unit 3 3 Quantity needed for production 15,000 13,800 Desired ending inventory of direct materials 4,140 4,410 Total quantity needed 19,140 18,210 Less: Beginning inventory of direct materials Quantity to purchase Number of toys to be purchased 5,000 14,700 3,870 43,500 3,870 January February 4,600 18,570 47,370 March 4,900 April 4,300 Cost per unit Print Done Total cost of direct material purchases