Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires four small "chips" that cost $6 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below:
|
Year 2
|
|
Year 3
|
|
|
First |
Second |
Third |
Fourth |
|
First |
|
| Budgeted production, in calculators |
51,000 |
82,000 |
142,000 |
96,000 |
|
78,000 |
|
|
| The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of a quarter must equal 15% of the following quarter's production needs. A total of 30,600 chips will be on hand to start the first quarter of Year 2. |
| Required: |
|
Prepare a direct materials budget for chips, by quarter and in total, for Year 2. (Do not round intermediate calculations. Input all amounts as positive values. Omit the "$" sign in your response.)
|