QS 20-7 Manufacturing: Direct materials budget LO P1 Zortek Corp. budgets production of 350 units in January and 340 units in February. Each finished unit requires three 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 100 pounds of Z. Prepare a direct materials budget for January.