Fuqua Chandler Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 12,100 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Chandler Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.

Complete the direct materials budget for January 2012.