Industries manufactures a popular interactive stuffed animal for children that requires

four computer chips inside each toy. The company pays $1

for each computer chip. To help to guard against stockouts of the computer chip,Donaldson

Industries has a policy that states that the ending inventory of computer chips should be at least 25%

he production schedule for the first four months of the year is as follows:

Stuffed animals to be produced
January . . . .	5,800
February . . . .	4,100
March . . . . .	4,800
April . . . . . . .	4,600

Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget.

Donaldson Industries
Direct Materials Budget
For the Months of January through March
	January	February	March	Quarter
Units to be produced
Multiply by: Quantity of direct materials needed per unit
Quantity needed for production
Plus: Desired ending inventory of direct materials
Total quantity needed