ABC Company has budgeted the following unit sales:

January 14,000

February 12,000

March 11,000

April 16,000

May 13,000

Each unit requires 2 metres of fabric which is estimated to cost $3.50 per metre. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. Clingy Company also have a policy of maintaining a raw materials inventory at the end of each month equal to 10% of the metres needed for the following month's production. There were 1,200 metres of fabric on hand at March 1.

Required:

Prepare a production budget and a direct materials budget for March.