The Svelte Jeans Company produces two different types of jeans. One is called the Simple Life and the other is called the Fancy Life. The company sales budget estimates that 350,000 of the Simple Life Jeans and 200,000 of the Fancy Life will be sold during 2012. The production budget requires 353,500 units of Simple Life jeans and 196,000 Fancy jeans be manufactured The Simple Life jeans require 3 metres of denim material, a zipper, and 25 metres of thread. The Fancy Life jeans require 4.5 metres of denim material, a zipper, and 40 metres of thread. Each metre of denim material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per metre. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired meters of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type.

Required:

Prepare a direct material purchases budget. (Please provide explanation to the answer)