Direct Materials Budget NIKE Shoe Company is off to a great budgeting start!! We have put together a sales budget, so we know how many pairs of our amazing running shoes we intend to sell, then we created a production budget, so now we know how many we need to produce each quarter to meet sales and finished inventory needs! In order to complete this budget, let's look at a few pieces of important information. Lets assume we are showing 250 units of raw material in our ending inventory coming into the new year and desired ending raw material inventory of 500 units for each quarter in the new year. Each pair of shoes we make requires 5 units of raw materials. Let's also note that our buyer has secured a price for our raw material of $3 per unit for the entire year! Yeah to our buyer for doing great work on an annual contract! This will certainly help us in our budgeting process right? The cost of raw materials to be purchased in quarter 3 is: O $7,500 O None of these O $6,750 O $6,200