Crane Company has $1,280$ pounds of raw materials in its December $31,2024,$ ending inventory. Required production for January and

February of $2025$ are $3,200$ and $4,000$ units, respectively. Two pounds of raw materials are needed for each unit, and the estimated

cost per pound is $$5.$ Management desires an ending inventory equal to $20\%$ of next month's materials requirements.

Prepare the direct materials budget for January.

CRANE COMPANY

Direct Materials Budget