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 or the first our months o the years 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 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 Less: Beginning inventory of direct materials Quantity to purchase Multiply by: Cost per unit Total cost of direct material purchases January February March Apri Stuffed animals to be produced 5,000 4,500 4,300 4,400 Print Done nter any number in the edit fields and then continue to the next