Becket industries manufactures a popular interactive stuffed animal for childr

Becket industries manufactures a popular interactive stuffed animal for children that require three computer chips inside each toy. Beckett pays $2 for each
computer chip. To help guard against stockouts of the computer chip Beckett has a policy that states that the ending inventory of computer chips should be at
least 20% of the following months production needs. The production needs for the first four months of the year are as follows: Jan= 5000 stuffed animals to be
produced Feb= 4400 stuffed animals to be produced March= 4800 stuffed animals to be produced April= 4200 stuffed animals to be produced.

Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the of the purchases in
the budget.