QS 20-7 Manufacturing: Direct materials budget LO P1

Zortek Corp. budgets production of 450 units in January and 340 units in February. Each finished unit requires four pounds of raw material Z, which costs $4 per pound. Each months ending inventory of raw materials should be 40% of the following months budgeted production. The January 1 raw materials inventory has 140 pounds of Z. Prepare a direct materials budget for January.