Reliance Corp. budgeted the following unit sales:

January

14,000

February

12,000

March

11,000

April

16,000

May

13,000

Each unit requires 2 metres of fabric that is estimated to cost $3.50 per metre. It is company policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. Reliance also has a policy of maintaining a raw materials inventory at the end of each month equal to 10% of the metres needed for the following month's production. There were 1,200 metres of fabric on hand at March 1. Instructions Prepare a production budget and a direct materials budget for March.