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.

Units to be produced:

January: 5100

February: 4200

March: 4500

April: 4300

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	_	_	_	_