Cash Collections Budget Requirement 2 . Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as wall as a summary for the quarter Pllows,com Cash Payments Budget - Direct Materials Pillows.com Excerpt from Direct Materials Budget For the Quarter Ended March 31 ssume that the total cost of direct materials purchases in December was $725,000. The company pays 40% of its direct taterials purchases in the month of purchase, and pays the remaining 60% in the month after purchase