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.

E9-21A (similar to) Question Help Osborne Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Osborne Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: (Click the icon to view the production schedule.) 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. Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Osborne 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 Enter any number in the edit fields and then click Check Answer. ?Score: 0 of 4 pts 2 of 6 (0 complete) HW Score: 0%, 0 of 20 pts E9-21A (similar to) Question Help Osborne Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Osborne Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number in the budget. i Data Table - X Prepare the direct materials budget by first calculating the total quantity needed, th Osborne Industries Direct Materials Budget Stuffed animals to be produced For the Months of January through March January . .... 5,400 January Feb February . .. . 4,100 Units to be produced March . . . . . 4,200 Multiply by: Quantity of direct materials needed per unit April . . . . . . . . 4,300 Quantity needed for production Plus: Desired ending inventory of direct materials Print Done Total quantity needed Enter any number in the edit fields and then click Check