Smith Industries manufactures a popular interactive stufed animal for children that require the computer chips de achty The company eye $1 for each computer cho To help to guart a Industries has a policy that states that the ending inventory of computer chips should be at least 25% e following monit duction needs. The puction schedu (Chick 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 dar amount of the purchases in the The St four months of Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget Smith Industries Direct Materials Budget For the Months of January through March 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 January February March Quarter