QS 20-7 Manufacturing: Direct materials budget LO P1 Zortek Corp. budgets production of 410 units in January and 270 units in February. Each finished unit requires four pounds of raw material Z, which costs $4 per pound. Each month's ending inventory of raw materials should be 30% of the following month's budgeted production. The January 1 raw materials inventory has 170 pounds of Z. Prepare a direct materials budget for January ZORTEK CORP. Direct Materials Budget For Month Ended January 31 Budget production (units) units lbs. Ibs Materials needed for production (lbs) lbs Total materials requirements (lbs) lbs. lbs. lbs per lb Materials to be purchased (lbs) Total cost of direct materials purchases