Gable industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. Gable pays $3 for each computer chip. To help guard against stockouts of the computer chip Gable has a policy that states that the ending inventory of computer chips should be at least 20% of the following months production needs. The production schedule for the first four months of the year is as follows:

Month	Stuffed animals to be produced
January	5,700
February	4,600
March	4,300
April	4,900

Required: 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