Exercise 3 (Materials Purchase Budget) Mini Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost P2 per chip and are purchased from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shownbelow. Year2 Year3 First Second Third Fourth First Budgeted production incalculators... 60,000 90,000 150,000 100,000 80,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Required: Prepare a materials purchases budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the peso amount of purchases for each quarter and for the year in total