Rouse Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $1 for each computer chip. To help to guard against stockouts of the computer chip, Rouse 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: B (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. Data Table Rouse Industries Direct Materials Budget For the Months of January through March January February 5,700 4,600 Stuffed animals to be produced March Quarter 5,700 Units to be produced 4,000 14,300 January February 4,600 3 3 w 3 March 12,000 Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed 17,100 3,450 13,800 3,000 42,900 3,600 4,000 4,800 April ........ 3,600 20,550 16,800 15,600 46,500 Print Done Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per unit Total cost of direct material purchases