Donaldson Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $4 for each computer chip. To help to guard against stockouts of the computer chip, Donaldson 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.

Juda Industries
Direct Materials Budget
For the Months of January through March
	January	February	March	Quarter
Units to be produced	$5100	$4200	$4500	$13,800
Multiply by: Quantity of direct materials needed per unit	3	3	3	3
Quantity needed for production	15,300	12,600	13500	41400
Plus: Desired ending inventory of direct materials	3150	3375	_	_
Total quantity needed	18450	15975	_	_

Less: Beginning inventory of direct materials	_	_	_	_
Quantity to purchase	_	_	_	_
Multiply by: Cost per unit	_	_	_	_
Total cost of direct material purchases	_	_	_	_