Quiz Company developed the following sales forecasts for the first five months of the year.

	Unit sales
January	40,000
February	50,000
March	60,000
April	60,000
May	62,000

Each unit is expected to sell for a price of $205.

Finished goods inventory on January 1 is projected to be 32,000 units. Quiz Company plans production to have ending inventory equal to 80% of the next months sales.

Each unit requires two materials: Material 1 and Material 2. Information on the materials is as follows.

Direct materials	Per-unit usage	DM cost per lb.
Material 1	10 lbs.	$8
Material 2	6	5

Quiz Companys materials inventory policy is to have ending materials on hand to meet 50% of the following months production needs. Inventory on January 1 is expected to satisfy this policy.

Each unit requires 3 hours of direct labor. Direct labor cost is $14.25 per hour.

Prepare a sales budget, production budget, direct materials purchases budget, and direct labor budget for the first quarter.

Determine total direct materials cost for March.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345