The facts and figures relating to Irrigation Corporation are as follows. Irrigation Corporation produces plastic garden sprinklers. The company is preparing its budget for 2015. The first step is to plan for the first quarter of the coming year. Irrigation has collected the following information from the managers.

1. Sales:

Sales for October 2014 110,200 units

Sales for November 2014 112,500 units

Sales for December 2014 102,100 units

Expected sales for January 2015 113,000 units

Expected sales for February 2015 112,500 units

Expected sales for March 2015 116,000 units

Expected sales for April 2015 125,000 units

Expected sales for May 2015 137,500 units

Selling price per unit $12

Irrigation likes to keep 10% of the previous months unit sales in ending inventory.

All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2014, totaled $183,780.

2. Direct Materials:

2 pounds of direct materials is needed to produce one unit. Irrigation likes to keep 5% of the materials needed for the previous months production in its ending inventory. Raw materials on hand on December 31, 2014, totaled 11,295 pounds.

Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2014, totaled $120,595.

3. Direct Labor

Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour.

4. Manufacturing Overhead

Indirect materials $0.30 per labor hour

Indirect labor $0.50 per labor hour

Utilities $0.45 per labor hour

Maintenance $0.25 per labor hour

Factory supervisors salary $42,000 per month

Factory Depreciation $16,800 per month

Property taxes $ 2,675 per month

Insurance $ 1,200 per month

Repairs $ 1,300 per month

5. Selling and Administrative expenses

Salaries $72,000 per month

Advertising $15,000 per month

Insurance $ 1,400 per month

Office Depreciation $ 2,500 per month

Other fixed costs $ 3,000 per month

Commission $0.25 per unit of sales

Further information

The cash balance on December 31, 2014, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2015.

Dividends are paid each month @ $2.50 per share for 5,000 shares.

The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of $1,000, and the interest rate is 8%. Irrigation borrows on the first day of the month and repays on the last day of the month if possible.

A $500,000 equipment purchase is planned for February 2015.

question :

what is the cost per unit of Direct Materials Purchase Budget ?

(You'll need to calculate it based on the relationship between the pieces of information provided, such as Accounts payable at the end of the year, number of units of direct materials required for production and purchased, etc.)