Homework: Chapter 9 Homework Sav Score: 056 of 1 pt HW Score: 15 56%, 1 56 of 10 p 2 of 6 (2 complete) E9-21A (similar to) E Question Help Anderson Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Anderson Industries has a polcy that states that the ending inventory of computer chips should be at least 30% of the ollowing month's production needs. The production schedule for the first four months of the year is as follows EB(Click the icon to view the production schedule) Requirement Prepare a drect matorials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget Direct Materials Budget For the Months of January through March JanuaryFebruery MarchQuarter 14,100 4,600 4,400 5,100 Units to be produced Multiply by Quantity of direct materials needed per unit 5,30013,80013,200 42,300 Quantity needed for production 3960 3870 ,870 4.140 3,960 Plus Desired ending inventory of direct materials 17.760 17,070 46,170 19,440 Total quantity needed Less Beginning inventory of direct materials Quantity to purchase Muliply by Cost per unit Total cost of direct material purchases i Data Table Stuffed animals to be produced 5,100 January 4,600 February 4,400 March. 4,300 April Print Done