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Business, 23.04.2020 17:58 kenariachrista

Becket industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $ 4 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 following month's production needs. The production schedule for the first four months of the year is 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.

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