Clingy Company budgeted the following unit sales: January 14,000 February 12,000 March 11,000 April 16,000 May 13,000 Each unit sells for $25. 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 has 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 2,400 yards of fabric on hand at March 1.

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