Homework Chapter 9 Homework O Part 1 of 2 Question 2 > Score: 0 of 2 points Save Gable Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $1 for each computer chip. To help to guard against stockouts of the computer chip, Gable 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 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, then complete the budget Data Table Quarter Gable Industries Direct Materials Budget For the Months of January through March January February Units to be produced 5.400 4,300 Multiply by Quantity of direct materiais needed per unit 3 Quantity needed for production 16,200 12.900 Plus: Desired ending inventory of direct materials 3,870 4 320 Total quantity needed March 4,800 3 14 500 January February March April. Stuffed animals to be produced 5.400 4.300 4.800 4,000 14 400 43.500 4860 4860 Print Done