E920A Direct materials budget (Learning Objective 2) The Ma 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: January. February.. March Stuffed animals to be produced 5,600 4,200 4,800 4,500 . .. Requirement Prepare a direct materials budget for the first quarter that computer chips needed and the dollar amount of the purchases in the budget. shows both the number of