E9-21A (similar to) Question Help February Stenback Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Stenback 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 cirect 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. Stenback Industries Direct Materials Budget Data Table For the Months of January through March January March Quarter Units to be produced 5,500 4,600 4.500 14,600 Stuffed animals to be produced 4 4 Multiply by: Quantity of direct materials needed per unit 4 4 January 5,500 Quantity needed for production 22,000 18,400 18,000 58,400 February .... 4,600 5,520 5.400 5,280 Plus: Desired ending inventory of direct materials 5,280 March 4,500 Total quantity needed 27,520 23,800 23,280 63,680 April 4.400 Less: Beginning inventory of direct materials Quantity to purchase Print Done Multiply by: Cost per unit Total cost of direct material purchases Enter any number in the edit fields and then click Check