Waterway & James Fabricators' purchasing manager, has just received the company's production budget for the first quarter.

		January		February		March		Quarter
Budgeted unit sales		21,000		28,000		30,000		79,000
+ Budgeted ending inventory		7,000		7,500		9,000		9,000
Total units required		28,000		35,500		39,000		88,000
- Beginning inventory		3,500		7,000		7,500		3,500
Budgeted production		24,500		28,500		31,500		84,500

Budgeted sales for April is 36,000 units and for May is 26,000 units. Each brick requires 6 pounds of clay, and Debra expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Company policy requires an ending finished goods inventory each month that will meet 25% of the following months sales volume. Debra expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year. Prepare Waterway & James's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.)

January February March $ $ $ $ $ $ Beginning inventory Budgeted ending inventory Budgeted production Budgeted purchases (lbs.) Budgeted purchases cost Production needs Standard cost per pound Standard pounds per unit Total DM required (lbs.)