Industries manufactures a popular interactive stuffed animal for children that requires

twotwo

computer chips inside each toy. The company pays

$ 1$1

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

JudaJuda

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

2525%

of the following month's production needs. The production schedule for the first four months of the year is as follows:

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.

Stuffed animals to be produced

January. . . . .

5,300

February. . . .

4,100

March. . . . . .

4,800

April. . . . . . . .

4,400

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

Juda Industries
Direct Materials Budget
For the Months of January through March
	January	February	March	Quarter
Units to be produced	0
Multiply by: Quantity of direct materials needed per unit
Quantity needed for production
Plus: Desired ending inventory of direct materials
Total quantity needed

Less: Beginning inventory of direct materials
Quantity to purchase
Multiply by: Cost per unit
Total cost of direct material purchases

Enter any number in the edit fields and then continue to the next question.

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

Juda Industries
Direct Materials Budget
For the Months of January through March
	January	February	March	Quarter
Units to be produced	0
Multiply by: Quantity of direct materials needed per unit
Quantity needed for production
Plus: Desired ending inventory of direct materials
Total quantity needed

Less: Beginning inventory of direct materials
Quantity to purchase
Multiply by: Cost per unit
Total cost of direct material purchases

Enter any number in the edit fields and then continue to the next question.

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

Juda Industries
Direct Materials Budget
For the Months of January through March
	January	February	March	Quarter
Units to be produced	0
Multiply by: Quantity of direct materials needed per unit
Quantity needed for production
Plus: Desired ending inventory of direct materials
Total quantity needed

Less: Beginning inventory of direct materials
Quantity to purchase
Multiply by: Cost per unit
Total cost of direct material purchases

Enter any number in the edit fields and then continue to the next question.

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

Juda 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

Less: Beginning inventory of direct materials
Quantity to purchase
Multiply by: Cost per unit
Total cost of direct material purchases

Enter any number in the edit fields and then continue to the next question.