QS 20-12 (Algo) Manufacturing: Direct materials budget LO P1 Zortek Corporation budgets production of 470 units in January and 290 units in February. Each finished unit requires five pounds of material Z, which costs $3 per pound. Each month's ending inventory of material Z should be 50% of the following month's budgeted production. The January 1 inventory has 1,175 pounds of material Z. Prepare a direct materials budget for January. ZORTEK CORPORATION Direct Materials Budget January Units to produce Materials required per unit (Pounds) Materials needed for production (Pounds) Total materials required (Pounds) Materials to purchase (Pounds) Cost of direct materials purchases 470 units pounds pounds pounds pounds pounds 0 pounds per pound