Micro Products, Inc., has developed a very powerful electronic

calculator. Each calculator requires two small Ac?A?chipsAc??? that cost $9

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

in calculators

    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

25% of the following quarterAc??cs production needs. A total of 30,000

chips will be on hand to start the first quarter of Year 2.

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.)

Micro Products, Inc.

Direct Materials Budget - Year 2

Quarter

in calculators

calculator

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needsAc???chips

select)AddDeduct: (Click to select)Ending inventoryBeginning

inventory

select)AddDeduct: (Click to select)Beginning inventoryEnding

inventory

purchasesAc???chips

purchases

$