The production budget of the Birmingham Steal Corporation, a manufacturer of baseball uniforms, shows budgeted production (in uniforms) for December and the first four months of next year as follows: lpo8 

Uniforms December 10,000 January 4,000 February 9,000 March 15,000 April 5,000 Each uniform requires 5 yards of heavy cotton costing $3 per yard. Birmingham Steal buys cotton on credit, paying in the month following the purchase. Its supplier offers no cash discounts.
Required: For each of the following two independent situations, prepare a direct materials purchases budget for the direct materials needed in the first three months of next year:
(1) Birmingham Steal’s policy is to have raw materials inventory at the end of each month equal to 50% of the following month’s usage requirement.
(2) Birmingham Steal’s policy is to keep raw materials inventory at the end of each month to a minimum, but without letting it fall below 5,000 yards. Assume that the December | raw materials inventory has 5,000 yards of direct materials and that the company’s only supplier is willing to sell a maximum of 60,000 yards of cotton to the company per month.