covers. The company expects to produce $12,480$ units in the first quarter, $19,890$ units in the second quarter, $22,620$ units in the third quarter, and $16,890$ units in the fourth quarter $($this information is derived from the previous exercise$).$

With regards to direct materials, each unit of product requires $8$ yards of material, at a cost of $$4$ per yard. Management prefers to maintain ending raw materials inventory equal to $15$ percent of next quarter's materials needed in production. Raf $N$ materials inventory at the end of the fourth quarter budget period is estimated to be $21,000$ yards.

With regards to direct labor, each unit of product requires $3$ labor hours at a cost of $$16$ per hour.

Required:

a$.$ Prepare a direct materials purchases budget for Car Products, Inc., using a format similar to Figure $9\mathrm{.}4.$

b$.$ Prepare a direct labor budget for Car Products, Inc., using a format similar to Table $9\mathrm{.}2.$