CWB Corp. makes hats and has the following inventory policy:
CWB maintains an ending inventory of materials equal to 4 percent of the next quarter's production needs.
The ending inventory for Quarter 4 (for the year) is assumed to be 50 yards. Each hat requires a total of 0.5 yard of material at a cost of $1.50 per yard.

Below is the budgeted production units:
	Q1	Q2	Q3	Q4	Yearly
Production units	1500	1500	2000	2000	7000
Use information from above for the three questions listed below.

1. Calculate the beginning direct materials inventory for Quarter 2 (in yards).

2. Calculate the budgeted cost of direct materials purchase for Quarter 2.

3. Calculate the budgeted cost of direct materials purchase for the year.