Oz Native T-shirts and Gifts produces stuffed toy animals; one of these is a soft plush Australian bilby. Each bilby takes 0.2 metres of fabric and 6 grams of polyfibre fill. Fabric costs $3.50 per metre and polyfibre fill is $0.05 per gram. The company has budgeted production of stuffed bilbies for the next four months as follows:Units

October 20 000

November 40 000

December 25 000

January 30 000

Inventory policy requires that sufficient fabric be in the end-of-month inventory to satisfy 15 per cent of the following months production needs and that sufficient polyfibre fill be in the inventory to satisfy 30 per cent of the following months production needs. Inventory of fabric and polyfibre fill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.Each bilby produced requires (on average) 0.10 direct labour hours. The average cost of direct labour is $15.50 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 of polyfibre fill 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 labour budget for the last quarter of the year, showing the hours needed and the direct labour cost for each month and for the quarter in total.