QS 20-7 Manufacturing: Direct materials budget LO P1 Zortek Corp. budgets production of 390 units in January and 240 units in February. Each finished unit requires one pounds of raw material Z, which costs $3 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 110 pounds of Z. Prepare a direct materials budget for January ZORTEK CORP. Direct Materials Budget For Month Ended January 31 Budget production (units) units fbs Materials needed for production (lbs) lbs lbs Total materials requirements (lbs) lbs lbs Materials to be purchased (lbs.) Total cost of direct materials purchases 0 lbs per lb.