Clingy Company budgeted the following unit sales: January 14,000, February 12,000, March 11,000, April 16,000, May 13,000. Each unit requires 2 yards of fabric which is estimated to cost $3.50 per yard. 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 yards needed for the following month's production. There were 1,200 yards of fabric on hand at March 1. Instructions: Prepare a production budget and a direct materials budget for March.