QS 20-7 Manufacturing: Direct materials budget LO P1 Zortek Corp. budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of raw material Zwhich costs $2 per pound. Each month's ending inventory of raw materials should be 40% of the following month's budgeted production. The January 1 raw materials inventory has 130 pounds of Z. Prepare a direct materials budget for January ZORTEK CORP. Direct Materials Budget For Month Ended January 31 Budget production (units) es units lbs Materials needed for production (lbs) lbs lbs Total materials requirements (lbs) lbs lbs Materials to be purchased (lbs) lbs per lb Total cost of direct materials purchases