Hoffman Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. Hoffman Industries pays $4 for each computer chip. To help guard against stockouts of the computer chip, Hoffman 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: E (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. Prepare the direct materials budget by first calculating the total quantity needed, and then complete the budget (Round all answers to the nearest number. Use parentheses or a minus sign for negative beginning inventory balances.) Production Schedule March Quarter 16,100 Number of toys to be purchased 5,900 5,300 January 3 3 Hoffman Industries Direct Materials Budget For the Months of January through March January February Units to be produced 5,900 4.900 3 3 Quantity of direct materials needed per unit Quantity needed for production 17.700 14,700 4,410 4,770 Desired ending inventory of direct materials 22,110 19,470 Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase February 4,900 15.900 3.780 48,300 3,780 March 5,300 April 4.200 19,680 52,080 Print Done Cost per unit Total cost of direct material purchases Check Answer Enter any number in the edit fields and then click Check Answer. Clear All All parts showing MacBook Air