QS 20-12 (Algo) Manufacturing: Direct materials budget LO P1 Zortek Corporation budgets production of 420 units in January and 390 units in February. Each finished unit requires four pounds of material Z, which costs $2 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 504 pounds of material Z. Prepare a direct materials budget for January Toner - January ZORTEK CORPORATION Direct Materials Budget January units Units to produce pounds Materials needed for production (Pounds) Total materials required (Pounds) pounds pounds pounds pounds pounds Materials to purchase (Pounds) per pound Cost of direct materials purchases