Kyler Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $4 for each computer chip. To help to guard against stockouts of Kyler 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 rst four months of the year is a a (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the rst 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 rst calculating the total quantity needed, then complete the budget. Data table Kyler Industries Direct Materials Budget stuffed animals to be produced For the Months of January through March January ..... 5,100 January February March Quarter February . _ _ _ 4,500 Units to be produced March ...... 4.300 Multiply by: Quantity of direct materials needed per unit April ....... 4,600 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 alculator (9 Time Remaining: 01:12