Tartan Specialists is a textile manufacturing company in Southern Tasmania. Every year the company prepares a complete set of budgets. The budgeting process begins with information supplied by the Sales and Marketing Department.

The Sales and Marketing Department has predicted unit sales (in square metres of fabric) to be as follows:

Month	January	February	March	April	May
Sales (square metres)	1,380,000	2,020,000	1,200,000	2,300,000	1,800,000

The balance in inventory at the beginning of the year was 350 000 square metres of fabric. The company plans to have inventory at the end of the month equal to 30% of the following months sales.

Each square metre of fabric requires 0.5 kilograms of yarn. The amount of yarn in inventory at the beginning of the year was 165,000 kilograms. The company plans to have an inventory at the end of the month equal to 20% of the following months production. The average cost of yarn is $7.50 per kilogram.

Required:

Prepare a Production, and Materials budget for Tartan Specialists for the first three months of the year and a total for the quarter ending March.