Rouse Industries manufactures a popular interactive stuffed animal for children that requires four 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 20% 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 materiais Duaget Dy Tirst calculating the total quantity needed, then complete the Duaget. Rouse Industries Direct Materials Budget For the Months of January through March January February 5,600 4,100 Data Table March Quarter Units to be produced 4,300 14,000 4 4 Stuffed animals to be produced 16,400 56,000 5,600 22,400 3,280 17,200 3,840 3,440 3,840 January February Multiply by: Quantity of direct materials needed per unit 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 4,100 4,300 25,680 19,840 21,040 59,840 March April 4,800 Print Done Total cost of direct material purchases