Smith 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, Smith Industries has a policy that states that the ending inventory of computer chips should be at least 30% 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 Smith Industries Direct Materials Budget For the Months of January through March Data table. January February Units to be produced 5,500 4.200 March 4,500 Quarter 14,200 Stuffed animals to be produced Multiply by: Quantity of direct materials needed per unit January..... 5,500 Quantity needed for production 22.000 16,800 18,000 56,800 February.... 4,200 5.040 5,400 5,160 5.160 March 4,500 Plus: Desired ending inventory of direct materials 4,300 Total quantity needed 27,040) 22,200 23.160 61,900 April Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per unit Total cost of direct material purchases Print Done X