Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and eight ounces ofpolyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:                        UnitsOctober         42,000November     90,000December      50,000January          40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory tosatisfy 40 percent of the following month’s production needs. Inventory of fabric and polyfiberfillat the beginning of October equals exactly the amount needed to satisfy the inventory policy.Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost ofdirect labor is $15 per hour.Required:1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showingpurchases in units and in dollars for each month and for the quarter in total.2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the yearshowing purchases in units and in dollars for each month and for the quarter in total.3. Prepare a direct labor budget for the last quarter of the year showing the hours needed andthe direct labor cost for each month and for the quarter in total.