QS 20-12 (Algo) Manufacturing: Direct materials budget LO P1 Zortek Corporation budgets production of 440 units in January and 270 units in February. Each finished unit requires four pounds of material Z, which costs $3 per pound. Each month's ending inventory of material Z should be 30% of the following month's budgeted production. The January 1 inventory has 1,070 pounds of material Z. Prepare a direct materials budget for January ZORTEK CORPORATION Direct Materials Budget January Units to produce units Materials needed for production (pounds) Total materials requirements (pounds) pounds pounds pounds pounds pounds pounds per pound Materials to be purchased (pounds) Cost of direct materials purchases