English Shepard Company budgeted production of 100,000 diaries for the year. Paper is required to produce a diary. Assume five square yards of paper are required for each diary. The estimated January 1 paper inventory is 20,000 square yards. The desired December 31 paper inventory is 30,000 square yards. If paper costs $0.25 per square yard, the direct materials purchases budget for the year is A) $120,000 B) $122,500 C) $125,000 D) $127,500 E) none of the above