Direct Materials Purchases Budget Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 2016, paper inventory is 25,100 square yards. The desired December 31, 2016, paper inventory is 17,000 square yards. If paper costs $0.60 per square yard, determine the direct materials purchases budget for 2016