Check my work Exercise 9-3 Direct Materials Purchases Budget [LO2) Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $4 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below Year 2 Year Pirst 95,000 eBook Pirnt Second Third Fourth terences Budgeted production, in calculators 75,000 105,000 165,000 115,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end of a quarter must be equal to 10% of the following quarter's production needs. A total of 51,000 chips will be on hand to start the first quarter of year Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Micro Products, Inc. Direct Materials Budget Year 2 Quarter First Second Third Fourth Year Required production in calculators Number of chips per calculator 4 KPrev 5 of 7 Next> ment # 7 (ch90 Saved Help Save & Exit Submit Check my work .. FirstSecond Third Fourth 75,000 105,000 165,000 115,000 First Budgeted production, in calculators 95,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end of a quarter must be equal to 10% of the following quarter's production needs. A total of 51,000 chips will be on hand to start the first quarter of year 2. eBock Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar erencesamount of purchases for each quarter and for the year in total Micro Products, Inc Direct Materials Budget- Year 2 Quarter First Second Third FourthYear Required production in calculators Number of chps per calculator Production needs-chips Total needs Required purchases -chips Total cost of purchases