Crescent Company produces stuffed animal toys; one of these is "Arabeau the Cow." Each Arabeau takes 0.20 yards of fabric (white with irregular black splotches) and eight ounces of polyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:

October: 42,000 units November: 90,000 units December: 50,000 units January: 40,000 units

Inventory policy requires that sufficient fabic be in ending monthly inventory to satisfy 20% of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy 40% of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour.

Required:

1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.

2. Prepare a direct materials purchases budget for polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.

3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total.