Question 1 Micro Products Company has developed a very powerful electronic calculator. The company has budgeted the sales of its calculator over the next five quarters as follows: Year 2018 1" quarter 204 quarter 314 quarter 4th quarter 1" quarter Sales in units 65,000 80,000 140,000 90,000 75,000 2019 The company is now on the process of preparing a production budget for the third quarter. Past experience has shown that end-of-quarter finished goods inventories must equal to 10% of the next quarter's sales. Each calculator requires three "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 2018 and for the first quarter of 2019, as below: The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of a quarter must equal 20% of the following quarter's production needs. Required: (a) Prepare a production budget for the four quarters of 2018 showing the number of units to be produced each quarter and for the year 2018 in total. (b) Prepare a direct materials budget for chips for the first and second quarters of 2018. At the bottom of your budget show the dollar amount of purchases for each quarter