Question

why are my answers wrong?

Osborne Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $1 for each computer chip To help to guard against stockouts of the computer chip, Osborne 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: (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget Data Table Stuffed animals to be produced January Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget Osborne Industries Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced 5900 4 800 Multiply by Quantity of direct materials needed per unit Quantity needed for production 236001 19200 17200 Plus: Desired ending inventory of direct materials 4800 Total quantity needed 28400 2 3500 Februar March 4300 4300 April 4.600 Print Done En ny number in the edit fields and then click Check Answer

Answer 1

Direct materials budget

	January	February	March	Quarter
Units to be produced	5,900	4,800	4,300	15,000
Direct materials per unit	4	4	4	4
Total units needed for production	23,600	19,200	17,200	60,000
Desired ending direct materials units	4,800	4,300	4,600	13,700
Total materials required	28,400	23,500	21,800	73,700
Beginning direct materials units	- 5,900	- 4,800	- 4,300	- 15,000
Direct material purchases	22,500	18,700	17,500	58,700
Cost per unit	$1	$1	$1	$1
Total cost of direct material purchases	$22,500	$18,700	$17,500	$58,700

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