Donaldson Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside cach toy. The company pays S4 for cach computer chip. To help to guard against stockouts of the computer chip, Donaldson Industries has a policy that states that the ending inventory af computer chips should be at least 30% af the following month's production needs. The production schedule for the first four months of the year is as follows EEB (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. Donaldson Industries Direct Materlals Budget For the Months of January through March 1 Data Table January February March Quarter 5,400 4,500 4,300 3 12,900 4,320 17,220 14,200 Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per unit Total cost of direct material purchases 16,200 4,050 20,250 13,500 3,870 17,370 42,600 4,320 46,920 January February.. March April Stuffed animals to be produced 5,400 4,500 4,300 4,800 Print Done Enter any number in the edit fields and then click Check