Chapters 9, 10, 11, 12, 14 Sample Problems for Chapters 9, 10, 11, 12, 14 1. Jan E9-20A Direct materials budget (Learning Objective 2) Beckett Industries manufactures a popular interactive stuffed animal for children that re- quires two computer chips inside each toy. The company pays $3 for each computer chip. To help to guard against stockouts of the computer chip. Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the fol- lowing month's production needs. The production schedule for the first four months of the year is as follows: Stuffed animals to be produced January 5,600 February 4,200 March 4,800 4,500 April..... 1350) 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