Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost $$2$ each and are purchased from an overseas supplier.

Micro Products has prepared a production budget for the calculator by quarters for Year $2$ and for the first quarter of Year $3,$ as shown below:

$\backslash$table$[[,$YEAR $2,$YEAR $3,],[,.$ First Quarter,Second Quarter,Third Quarter,Fourth Quarter,First Quarter$],[\backslash$table$[[$Budgeted production, in$],[$calculators$]],60,000,90,000,150,000,100,000,80,000]]$

The chip used in production of the calculator is sometimes hard to get, so it is necessary to carrv large inventories as a precaution against stock outs. For this reason, the inventory to start the first quarter of Year $2.$

Required:

Prepare a direct materials budget for chips, by quarter and in total, for Year $2.$ At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total.

$\backslash$table$[[,$First Quarter,Second Quarter,Third Quarter,Fourth Quarter,Year $2],[$Required production of calculators$],[$Number of chips per calculator,,,,,w$],[$Total production needs $($chips$)],[$Add: Desired ending inventory$],[$Total needs $($chips$)],[$Less: Beginning inventory$],[$Required purchases $($chips$)],[$Cost per chip$],[$Cost of direct materials purchases,,,,,$]]$